EU considers tiny and affordable car class

The European Union president is looking to support car makers through a new ‘E-car’ category. This is to counter what it sees as a looming Chinese threat.

Ursula von der Leyen said that the EU will work with car industry bosses to develop small affordable cars. The move may help to safeguard the industry. Whether or not these are EVs is beside the point.

This is a relatively recent proposal. In July, the Stellantis chairman Renault Group boss talked about creating a small car class with fewer safety regulations. The idea is that they would be cheaper to build and emit fewer lifecycle emissions.

Think: a kei car class for the EU. In Japan, microcars account for around 40 per cent of domestic market sales. The aim is to be able to sell a 15,000 Euro electric car with a range of around 110km of range.

At the same time, car industry figureheads have called for urgent action on the ICE car sales ban of 2035. They argue that this risks damaging the European car industry irreparably. It is already facing a threat from incoming Chinese rivals.

Those behind the rethink believe the EU should look at lifecycle CO2 emissions of vehicles instead of measuring tailpipe emissions. This would give car firms the freedom to use a range of different powertrains while also reducing CO2 output.

Von der Leyen says the European car industry is “a pillar of our economy and industry”, adding that “millions of jobs depend on it.”

She explained that the EU had already added flexibility to the 2025 CO2 targets and added: “With respect to technology neutrality, we are now preparing the 2035 review.”

As for the ‘E-car’ class, she said: “Millions of Europeans want to buy affordable European cars, so we should also invest in small, affordable vehicles. These will be both for the European market and also to meet the surge in global demand. This is why we will propose to work with industry on a new small affordable cars initiative.

“I believe Europe should have its own E-car. E for environmental – clean, efficient and lightweight. E for economical – affordable for people. E for European – built here in Europe with European supply chains. Because we cannot let China and others conquer this market.”

She added: “No matter what, the future is electric, and Europe will be part of it. 

“The future of cars – and the cars of the future – must be made in Europe.”

Stellantis executives welcomed the announcement of the initiative. 

“Affordable small cars mean cleaner air, safer roads, increased industrial production, and faster decarbonisation.

“President von der Leyen’s initiative is both visionary and urgent. Now it’s time to turn ambition into action.”