European car makers are feeling the heat from cheap Chinese vehicles. To compete, Stellantis and Renault are pushing the European Union to create a new category of cars: smaller, with fewer safety features. They call them “e-cars.”
This isn’t a new idea. A few years ago, Renault’s CEO Luca de Meo talked about Japan’s “kei cars” – small urban vehicles with limited size and engine power. They have lower taxes and insurance costs. De Meo thinks Europe should have something similar.
The problem is that current European regulations make cars bigger, heavier, and more expensive. That’s why small cars have been left behind. They’re just not profitable. But with the right rules, this segment could rebound.
Stellantis’ president John Elkann says Europe needs its own “kei car.” He thinks “e-cars” could be the answer. Elkann says there’s no reason Europe can’t have a smaller car segment like Japan’s.
The “e-car” idea is gaining traction. S&P Global says small cars currently make up only 5% of the market, but they could reach 600,000 sales by 2030. That’s a 20% increase from last year.
The EU is considering the proposal. One of the main issues is the General Safety Regulation 2 (GSR2), which requires safety features like side airbags, driver fatigue sensors, and lane change warnings. These features add between 850 and 1400 euros to the cost of a car.
Car makers think these features are unnecessary for small urban vehicles. They want a new category called M0 or “e-car.” The European Commission is looking into it.
The question is, can “e-cars” be a viable solution for the EU? Only time will tell.
What are “e-cars”?
“E-cars” are small, urban vehicles with limited size and engine power. They would have fewer safety features than regular cars, making them cheaper to produce and buy.
Why do car makers want “e-cars”?
Car makers think “e-cars” could help them compete with cheap Chinese vehicles. They also believe the segment could rebound if the right rules are in place.
What’s the current state of small cars in Europe?
Small cars currently make up only 5% of the market. They’re not profitable due to European regulations that make cars bigger, heavier, and more expensive.
What’s the potential for “e-cars”?
S&P Global says “e-car” sales could reach 600,000 by 2030, a 20% increase from last year. The segment could rebound if the EU creates a new category with fewer regulations.
Não há razão para que, se o Japão tem um kei car, que representa 40% do mercado, a Europa não deva ter um e-car.