“Why the Euro 7 Standard Could Make Car Costs 10 Times Higher Than Expected”

The Euro 7 standard will come into force for new cars from 1 July 2025. “This means, among other things, that vehicles may emit less CO2 emissions from then on, which means that new technological developments are required. And that costs a lot of money,” explains Alain De Jong, journalist at GoCar, in a conversation with Business AM.

Listen to the full conversation with Alain De Jong below.

The essence: The future Euro 7 standard, which should enter into force in 2025, is not welcomed by everyone. For example, the Italian Minister of Transport Matteo Salvini (Lega Nord) is opposed to these new limit values ​​for CO2 emissions from cars. The car manufacturers warn that this can significantly increase the price tag of the car.

• According to a study by Frontier Economics, commissioned by ACEA, the costs of the Euro 7 standard could be four to ten times higher than what the European Commission had predicted in advance. “A lot of research and development is needed to ensure that the cars meet these new standards. That costs a lot of money. The producers will pass on these extra costs to the consumer,” explains De Jong.
• He asks himself whether owning a car will still be for everyone in the future. The purpose of the Euro 7 standard is to make the vehicle fleet greener and to encourage people to switch to an electric car. “But to date, electric cars are quite expensive. Not everyone can afford such a vehicle.
• De Jong adds that the Euro 7 standard will make the range of vehicles much smaller. “Many brands are removing the cheaper basic models from their catalog because the profit margins are so small,” he says. “As a result, they only sell the more expensive cars. You can earn more with these models and it is therefore more profitable to develop new technologies for them.”