The Challenges and Implications of the Euro 7 Standard for the European Automotive Industry

Some countries are pushing back against the Euro 7 standard, which aims to tighten ecological limits for electric cars. The standard, set to take effect in 2025, has raised concerns among European automakers due to its strict requirements.

One of the main issues with the Euro 7 standard is the timing. With implementing decrees not expected until next year, car companies would have a limited amount of time to make significant changes to production, subcontractor production, and homologation laboratories. Additionally, there is uncertainty about how certain measurements should be carried out. Many believe that there should be a shift in the effectiveness of the standard to ensure successful implementation in the automotive industry.

Another problem is the extension of limits to wear from brakes and tires. While this is aimed at electric cars, which have greater tire wear and contribute to microplastic pollution, no specific goals have been set for the size of abrasions. This could lead to increased costs for car manufacturers, with estimates ranging from a few hundred euros to over two thousand euros per car.

The form of measurement is also a concern. The Euro 7 standard aims to cover exceptional extremes, such as cold engines, extreme altitudes, extreme vehicle loads, and low outside temperatures. However, developers of internal combustion engines argue that it is impossible to guarantee compliance with the limits under such extreme conditions.

Furthermore, the measurements for the Euro 7 standard would need to take place in real operation, potentially using connecting devices. This could introduce greater inaccuracies and require manufacturers to be more cautious than the limit requires. Manufacturers would also be required to guarantee compliance for ten years and continuously monitor the car’s performance. There are even discussions about implementing measures that would automatically stop the car or prevent it from entering certain city zones if the limits are exceeded.

There is hope for a softening of the Euro 7 standard, as a coalition of states, including Eastern European countries, Italy, and others, have called for further negotiations. The position of Germany and France will play a significant role in determining the outcome. However, there is concern that even if the standard is softened, the European automotive industry still faces challenges from the influx of Chinese producers.

The Chinese automotive industry has been preparing for the rise of electric cars for years and has significant advantages in terms of production capacity, lower costs, and material availability. If the Euro 7 standard is implemented, it is likely that Chinese producers would focus solely on electromobility for the European market. However, China’s market is almost three times larger than Europe’s, and new trends are expected to originate there and trickle down to Europe.

European manufacturers may find hope in protecting the market through ESG requirements for production and the production chain, as well as the implementation of a carbon tax. However, the European automotive industry faces challenges due to higher production costs compared to Chinese manufacturers. As a result, the industry may shrink in terms of production and employment over the next five to ten years.

There is also pressure from North America, where incentives attract European investors. Some European manufacturers are already opening operations in Canada and the USA. However, there is a risk of Chinese and Asian producers buying assets in Europe, as the world moves towards block regionalization.

The development of electromobility in the Czech Republic may be slow without significant support and incentives. Electric cars are expected to be adopted first by companies, but without incentives like those seen in other European countries, progress may be delayed. Negative motivations, such as restrictions on entry into city centers with internal combustion engines and fuel emission allowances, may play a role in driving the adoption of electric cars.

Overall, the Euro 7 standard and the challenges faced by the European automotive industry highlight the complex landscape of the transition to electromobility. The decisions made in the coming years will have a significant impact on the industry’s future and its ability to compete with global players.

Why is it important for European automakers to focus on research and development to catch up with Chinese counterparts in order to compete in the electric car market

C cars and stricter emission standards for a while now. Chinese automakers have already invested heavily in research and development to meet these requirements, giving them a competitive advantage over their European counterparts.

The pushback against the Euro 7 standard is not surprising, given the significant changes and costs it would entail for European automakers. However, it is important to consider the long-term benefits of stricter ecological limits. Electric cars are seen as a key solution in reducing greenhouse gas emissions and combating climate change. Tightening the standards for these vehicles would help ensure that they are truly environmentally friendly and contribute to a cleaner, greener future.

While the concerns raised by European automakers are valid, it is crucial to find a balance between environmental protection and industry sustainability. Further negotiations and discussions are needed to address these issues and create a more viable and feasible standard. Collaboration between governments, automakers, and industry experts is essential in finding a solution that works for everyone.

In the meantime, European automakers should focus on investing in research and development to catch up with their Chinese counterparts. This would not only help them meet the requirements of the Euro 7 standard but also enable them to compete in the growing electric car market. By taking proactive steps towards sustainability, European automakers can ensure their long-term success and contribute to a cleaner, greener future.