After years of setbacks, the European Commission has thrown a small, but important cable to car manufacturers. The profound review of the Euro 7 emissions standard has satisfied the brands, although this decision will not result in a drop in the price of new cars.
After years of setbacks, stricter and more demanding emissions standards and imposing a change in long-term mobility that forces car manufacturers to make huge and multi-million dollar investments to comply with regulations and, at the same time, in technologies to completely change its business model to electric cars.
Statements from senior officials and pressure on the European Commission have made such a dent in the organization that it has changed its strategy. This week it has become known that the long-discussed Euro 7 standard will not be as strict as previously known. In the absence of approval on November 9, only the requirements for commercial vehicles will be further tightened, but not the emission limits of traditional combustion models. A rule that will not bring what many expect, cheaper new cars.
The price of new cars depends on other factors
This decision will not mean the end of traditional thermal engines by 2026, as the worst analyzes have been predicting in recent months, although manufacturers will promote self-recharging hybrids and, especially, PHEVs. A technology that will be implemented with more force to fit customers into the transition to electric cars.
However, there are already those who think that the fact that the European Union frees manufacturers from extra investment to increase the efficiency of engines, will lower the escalation of prices in new cars, and nothing could be further from the truth. The cars will stay on the current line. Prices will not rise any further if energy prices decline, commodity prices decline, inflation declines, or demand for microchips stabilizes.
These are the key factors for car prices to return to more normal figures, something that is not expected to subside in the short term, and that will become the norm since from 2026 when the new norm comes into force, there will already be several brands that will have been transformed and their commercial exhibitions will have more 100% electric cars. The reality is very different, and what can be expected is that the price of batteries will drop to make them more affordable.