EU Pushes New Policies to Keep European Automakers Competitive

European carmakers have shown promising progress in meeting EU emissions requirements, with sales of electric vehicles increasing by 38% compared to previous periods ^[1]. However, the EU market is facing strong competition from other regions, with China, the UK, Thailand, and Vietnam showing more aggressive EV adoption rates ^[2].

In response to affordability concerns, the EU has backed industry plans for a new class of small, affordable cars, taking inspiration from Japan's successful kei car segment ^[3]. This initiative comes as new Renault Group leadership emphasizes the critical need to reduce EV prices across Europe ^[4].

Recent data has raised concerns about plug-in hybrid vehicles, with EU findings showing that PHEVs emit approximately five times more carbon dioxide than official tests indicate ^[5]. This revelation comes at a crucial time as European manufacturers navigate the transition to electric vehicles while maintaining their global market position.

The automotive industry's transformation is evident at major events like the Munich Motor Show, where European brands are showcasing their strategies for survival in an increasingly competitive market ^[6]. Legacy brands are working to prove their relevance while adapting to new regulatory requirements and changing consumer preferences.

1. Most Carmakers on Track to Meet EU CO2 Reduction Requirements
2. EU EV Market Being Left Behind by China, UK, Thailand, and Vietnam!
3. Industry plans for new small, affordable car class backed by EU
4. New Renault boss: Europe needs to focus on cutting EV prices
5. Plug-in Hybrids Now Emit 5 Times, on Average, What Official Tests Claim — EU Data
6. Munich 2025: On the frontline of Europe's fight for automotive survival