The health of the automotive sector in Europe hangs in the balance. Following the approval of the new ‘Euro 7’ anti-pollution regulations by the European Parliament, the Council and the European Commission are now awaiting ratification.
However, the old continent is faced with the need to balance environmental concerns with the needs of industrial competitiveness, in a context marked by rising energy prices, supply chain shortages, significantly reduced demand and high inflationary pressures.
Just over a year ago, the EU already approved the reduction of the volume of emissions in 2030 by around 55%, as well as the ban on the sale of carbon-neutral vehicles from 2035. This is an unprecedented boost to the electrification of the sector.
When will it come into force?
The ‘Euro 7’ regulatory text is expected to be definitively approved before the end of the year. The main victims of this measure will be both diesel vehicles and the buyers themselves, whose purchasing power will be reduced. Consequently, ‘Euro 7’ will come into force, unless there is a last-minute surprise, in 2027 for cars and vans and in 2029 for trucks and buses.
Its main restrictive measures
Under the ‘Euro 7’ standard, vehicle emission limits will be tightened, including nitrogen oxides, carbon monoxide and particulates from tire and brake wear. In addition, it is planned to implement measures to increase the life expectancy of batteries.
On this basis, the maximum emission levels for gasoline-engine vehicles will remain at 60 g/km NOx, as in ‘Euro 6’. In the case of diesel-powered vehicles, the value will drop from 80 g/km to 60 g/km.
In the case of light commercial vehicles, the European Parliament proposes to set a limit on pollutant emissions of around 60% compared to current values. However, they will vary according to their weight.
An international regulation on wheels has also been introduced for 2026. The regulation on brakes means that regenerative braking for vehicles with electric motors will be reduced from 7 mg/km to 3 mg/km. In the case of electric cars, this is a major challenge, as their high mass means higher pollution in these respects.
Finally, the European Parliament also refers to batteries, obliging manufacturers to maintain 75% of the available capacity a decade after their sale. In the case of vans and commercial vehicles, the percentage is reduced to 70%.
What does ‘Euro 7’ mean for the consumer?
Undoubtedly, car manufacturers are working against the clock to implement this law in less than ten years, and it must be in force before the purchase of new 100% electric vehicles is imposed in Europe. By implementing new, more efficient systems that reduce pollution rates, the end customer will have to pay a higher price for these more select parts.
The extra cost, according to European Commission estimates, would be between 200 and 400 euros per vehicle. However, manufacturers have commissioned a study by the ACEA (European Automobile Manufacturers Association), which estimates that the extra cost would be 1,860 for gasoline cars and 2,670 for diesel cars.
As the volume of sales falls, factories all over Europe would be forced to considerably reduce their production, and therefore, to undertake personnel cuts. All this against a backdrop of a clearly aging vehicle fleet.
The position of the EU member states
Countries such as Italy, France, the Czech Republic, Romania, Portugal, Slovakia, Bulgaria, Poland and Hungary have publicly voiced their complaints against ‘Euro 7’. The restrictive regulatory measures will put the brakes on the automotive sector and, in addition to destroying thousands of jobs, will lead to a loss of purchasing power for the population.
It should be remembered that the European automobile industry generates an average of 13 million jobs in Europe, so if ‘Euro 7’ is applied, it could fall to very low levels and lose weight compared to other powers in the sector such as the USA and China. Perhaps this will encourage companies in the automotive sector to switch, in advance, to 100% electric production.
The environmental impact
The manufacturers themselves suggest that the environmental impact will not be so significant in the end. This position is shared by environmental groups, which have expressed their dissatisfaction before the European Parliament. Hence Transport & Environment has assured that if urgent measures are not taken, 100 million highly polluting cars will be sold before 2035 and will be circulating on European roads for the next decades.