Particle.news
Download on the App Store

EU Signals New Micro‑EV Category as Talks Over 2035 Engine Ban Continue

Officials emphasized a Europe‑first supply base to counter Chinese cost advantages.

Overview

  • In a strategic dialogue in Brussels, industry and EU leaders reported no agreement on changing the 2035 phaseout of new combustion‑engine car sales or on the role of synthetic fuels.
  • Executive Vice President Stéphane Séjourné told automakers the Commission intends to create a regulatory category for ultra‑compact electric cars priced around €15,000, with provisions reflected in CO2 standards.
  • The plan includes European preference and local‑content requirements for batteries and components under an Industrial Accelerator law, plus conditions on foreign investment, particularly from Chinese firms.
  • The discussions follow Ursula von der Leyen’s launch of the Small Affordable Cars initiative and the announcement of a forthcoming review of the 2035 rule guided by technological neutrality.
  • Automakers pressed for demand support, with Stellantis CEO Antonio Filosa urging EU 'super incentives' and fleet renewal measures; Stellantis shares rose about 9% after his remarks.