The automobile sector is preparing for one of the most complicated moments in its history, at least in Europe. Our continent is being the most restrictive for combustion vehicleswith emissions regulations that tighten and that can suffocate manufacturers. In 2025 a new stage begins in which the average CO2 emissions of all cars sold must be 93.6 g/km. Those who exceed it face million-dollar fines. That will cause thegasoline car prices rise considerably.
There has been a lot of talk that some manufacturers will prefer to sell fewer combustion cars rather than pay European Union sanctions. The estimate is that if they maintain the sales levels of 2024, they will be paid around 15,000 million in fines and that worries the sector. There is also another issue, since not only is a 19% reduction in average emissions required (compared to this year), it is also required that the 20% of sales are electric vehicles.
As the demand for electric cars is not reaching that level in many of the brands (the average is 13%), the movement is clear: give all possible discounts to electric cars and make gasoline cars more expensive so that they don’t have that competitive advantage. In other words, the average driver is practically being forced to buy a “zero emissions” vehicle. It is something that worries users who are not prepared to deal with this technology, but also manufacturers.
At the moment, the production of electric vehicles is more expensive than that of traditional combustion models. Furthermore, the political and economic situation does not help too much and purchasing aid is being reduced in some countries. This movement is already being seen little by little, as increases in the prices of gasoline cars have been detected in Volkswagen Group, Stellantis and Renault. They are the ones who would be most affected by the sanctions today if things do not change. Even Volkswagen would face 7.7 billion euros alone.
We will see if with these measures the electric ones become more attractive, not for my own demeritmore because of the demerit they would get in the combustion ones. Luckily, in 2025 there will be quite a few launches in the electric segment, some small vehicles that will already offer reasonable and more logical prices for the average public.
