ACEA: Euro 7 proposal to impact only 10% of cars on EU roads

Cars with internal combustion engines (ICEs) falling within the scope of the Euro 7 emission standards will make up only 10% of those on EU roads in 2035, according to the European Automobile Manufacturers’ Association (ACEA).

ACEA represents Europe’s 14 major car, truck, van and bus manufacturers based in Brussels, Belgium. 

The proposed Euro 7 emission standards “risks placing unnecessary financial pressure on consumers and diverting investment from zero-emission technologies,” the trade association believes.

The emission rules concern the sale of new internal combustion engine (ICE) cars in the European Union (EU) from when Euro 7 will be implemented, which is  expected to be in the 2026-2027 timeframe.

As a result, cars falling within the scope of Euro 7 will make up only 10% of those on EU roads in 2035. A recent study estimates that this will result in at most a 4% reduction in nitrogen oxides (NOx) emissions.

Despite minimal environmental benefits, Euro 7 standards would have significant repercussions for consumers and manufacturers’ investments in zero-emission technologies, according to ACEA.

For instance, according to some manufacturers’ estimates, the average consumer price of a new car could increase by EUR2,000 (USD2,191), placing additional financial pressures on European consumers who are struggling with high energy costs and inflationary pressures, the ACEA said.

Meanwhile, the latest ACEA data on electrically chargeable vehicles (ECVs) reveals that affordability remains a significant obstacle for European consumers, as many are forced to refrain from purchasing electric vehicles.

Electric cars represent a mere 9% or less of the market share in more than half of EU member states. These countries are mainly concentrated in Central and Eastern, and Southern Europe, where the average net income is EUR13,000 (USD14,245). In contrast, the highest shares (30% and above) are found in just five Northern and Western European countries where net income exceeds EUR32,000 (USD35,066).

ACEA believes that the lack of consumer incentives for purchasing cleaner and greener vehicles is hampering the potential of Europe’s electric car market. The lack of enabling conditions, including access to charging infrastructure, also exacerbates market share disparities across member states and regions in the EU.