Are EU Green Rules Killing Affordable Cars?

Developing a new car for the European market has become a daunting task — not because of innovation demands, but due to the overwhelming pressure of regulatory compliance. As the European Union tightens its grip with ever-stricter rules on emissions, safety, and noise, automakers are warning that excessive bureaucracy is threatening not just vehicle affordability, but also the future of sustainable mobility.

John Elkann, Chairman of automotive giant Stellantis and also of Ferrari, revealed to Automotive News Europe that over a quarter of an engineer’s time at Stellantis is now spent solely on making vehicles compliant with EU rules. “If you look at our engineers, more than 25 percent just work on compliance, so no value is added,” Elkann stated, highlighting the mounting cost — both in labor and innovation.

The burden is only expected to increase. By 2030, cars in Europe will be required to emit an average of just 49.5 grams of CO₂ per kilometer — nearly half the target for 2025–2029. From 2035 onward, new vehicles emitting any harmful substances will be outright banned, marking a total phase-out of combustion engines.

While this legislation aims to steer Europe toward a greener future, it’s also pushing many vehicles — particularly smaller, more affordable ones — off the roads. Rising costs have forced automakers like the Volkswagen Group to discontinue compact city cars such as the VW up!, Skoda Citigo, and SEAT Mii. In 2019, over one million vehicles priced below €15,000 were sold in Europe. Today, that number has shrunk to a mere 100,000.

Elkann sees a solution in looking east — to Japan. He’s advocating for a European version of the Japanese kei car, a class of ultra-compact, lightweight vehicles that make up about 40% of Japan’s market. “There’s no reason why if Japan has a kei car… Europe should not have an E-Car,” he argued.

Former Renault CEO Luca de Meo echoed the sentiment, criticizing the current trend of oversized electric SUVs. “Driving around every day in an electric vehicle weighing 2.5 tons is clearly an environmental nonsense,” he noted earlier this year.

Despite the growing dominance of crossovers, some brands are succeeding with smaller offerings. Dacia, Renault’s no-frills budget brand, has carved out a 5.1% market share in the EU this year, thanks in large part to the lightweight and affordable Sandero. Even its SUVs remain relatively light, with the Bigster maxing out at just 1,400 kilograms.

The core dilemma is clear: in trying to build the greenest cars, regulators may be steering the market toward heavier, pricier models, inadvertently sidelining the very goal of reducing emissions. For many consumers, the choice will become either unaffordable electrics or keeping older, polluting vehicles longer — the opposite of what EU policy intends.

As calls grow for a more flexible, tiered approach to regulation — particularly one that fosters small, efficient urban vehicles — the question remains: will European lawmakers loosen the rulebook to make room for an “E-Car”? Or will red tape continue to strangle innovation and affordability in the name of progress?

If the future of European mobility is to be both green and accessible, something has to give.

Source: Automotive News Europe

Kia Walks a Tightrope in Europe’s Shifting Auto Market

Selling cars in Europe today is no longer just about satisfying consumer demand—it’s about navigating a complex web of regulatory requirements, economic pressures, and shifting market preferences. And no automaker illustrates this balancing act better than Kia.

Despite the European Union’s aggressive push toward electrification, combustion-engine vehicles still dominate the roads. According to data from the European Automobile Manufacturers’ Association (ACEA), electric vehicles (EVs) accounted for just 15.3% of new car sales in the EU during the first four months of the year. Yet the regulatory noose is tightening: the EU is pressing ahead with stricter CO₂ emissions limits and has mandated that all new cars sold from 2035 onward must be electric.

Caught in this tug-of-war is Kia, which is carefully trying to strike the right balance. “If we rely too much on combustion cars, we risk not reaching the CO₂ targets and having to pay fines. If we push EV sales too much, we end up denting our profit margins,” said Carlos Lahoz, Vice President of Sales for Kia Europe, in an interview with Automotive News Europe.

The dilemma isn’t unique to Kia. Across the continent, automakers are grappling with a similar paradox. Traditional internal combustion engine (ICE) vehicles are still more profitable and in higher demand, but EVs are essential to meet emissions targets and avoid hefty fines. Volkswagen and Renault have both voiced fears that failing to comply with new EU emissions standards could cost them billions of euros as early as 2025.

The EU has somewhat eased the pressure by allowing carmakers to average their emissions over the 2025–2027 period rather than hitting targets in 2025 alone. Still, the road ahead is steep. Stellantis’ chairman recently revealed that over a quarter of engineers’ working hours are now consumed by regulatory compliance tasks, much of it related to emissions standards.

At the heart of the problem is a lack of profitability in the EV sector. Lahoz acknowledged that battery costs remain a major hurdle, preventing electric vehicles from achieving cost parity with their gas-powered counterparts. As a result, Kia must use profits from ICE models to fund the transition to electric—a strategy echoed by many automakers across Europe.

Nonetheless, Kia is proving that strategic flexibility can pay off. The South Korean brand is enjoying a strong year in Europe, capturing a 4.1% market share in the EU, EFTA, and UK combined during the first four months of 2025. That puts it ahead of several well-established rivals, including Ford (3.4%), Opel/Vauxhall (2.9%), Citroën (2.8%), Fiat (2.3%), and SEAT (1.7%). Impressively, it even surpassed its larger affiliate Hyundai (3.9%).

For now, Kia’s strategy hinges on maintaining a careful equilibrium: continuing to sell ICE vehicles to support short-term profitability, while steadily growing its EV lineup to ensure long-term survival in an increasingly green automotive landscape. Whether that tightrope walk can remain sustainable as regulations tighten and competition from low-cost EV manufacturers, particularly from China, intensifies remains to be seen.

But one thing is clear—Europe’s automotive future is electric, and Kia, like the rest of the industry, must evolve without stumbling.

Source: Automotive News Europe

Third-Generation Nissan LEAF Comes With 603 km Range and Sleek New Design

Nissan has taken the wraps off the all-new, third-generation LEAF — a pioneering electric vehicle (EV) that helped shape the modern era of electric mobility. First introduced in 2010, the LEAF now enters a new chapter with significant advancements in design, performance, and range, aiming to meet the evolving demands of today’s EV drivers.

As one of the world’s first truly mass-produced electric vehicles, the LEAF has sold nearly 700,000 units globally. Its legacy as a trailblazer in sustainable transport is unquestionable. Now, Nissan is betting on a refreshed formula that promises not only greater efficiency and practicality but a driving experience tuned for the realities of 2025 and beyond.

Design: Sleek, Smart, and Aerodynamic

Crafted at Nissan’s Global Design Studio in Atsugi, Japan, the new LEAF cuts a striking figure. It boasts a sleek silhouette with a drag coefficient of just 0.25, signaling a major focus on aerodynamic performance. Flush-mounted door handles, a flowing roofline, and sculpted bodywork create a refined, futuristic appearance. The design is more than just eye-catching—it’s functional, optimizing airflow to extend range and enhance driving dynamics.

Adding to its contemporary appeal are distinctive LED light signatures at both the front and rear, giving the new LEAF a unique presence on the road.

Urban-Friendly Exterior, Family-First Interior

Although the vehicle’s compact dimensions make it a natural fit for urban driving, tight parking, and nimble maneuvering, Nissan hasn’t compromised on interior space. The cabin is engineered with the modern family in mind, providing ample room for daily commutes, school drop-offs, and even weekend getaways.

The trunk capacity has been expanded to 437 liters, supported by a flexible cargo system and a power tailgate for added convenience. Roof rack compatibility also allows for the transport of bikes or extra gear, adding to the vehicle’s versatility.

Performance and Range: Closing the Gap with Combustion Engines

In a clear response to lingering concerns over EV range and charging time, the third-generation LEAF is equipped with advanced charging technology and multiple battery options. The model supports DC fast charging up to 150 kW, allowing it to recharge up to 416 kilometers of range in just 30 minutes.

Two battery options are available: a 52 kWh pack offering up to 430 kilometers of range, and a larger 75 kWh battery capable of 603 kilometers on a single charge. On highways, the new LEAF can maintain a range of 323 kilometers at a cruising speed of 130 km/h—putting it on par with many conventional vehicles in terms of travel convenience. With smart charging strategies, Nissan claims that long-distance journeys over 800 kilometers can be completed with minimal time lost compared to gasoline-powered cars.

Production and Availability

The third-generation LEAF will be manufactured at Nissan’s Sunderland plant in the UK, a major hub for electric vehicle production in Europe. Pre-orders are set to begin this autumn, with the first customer deliveries expected in spring 2026.

As governments across the globe tighten emissions standards and consumers increasingly embrace clean energy, the all-new Nissan LEAF arrives at a pivotal moment. With its blend of futuristic design, enhanced practicality, and impressive range, the LEAF is once again positioning itself as a leader in the rapidly shifting automotive landscape.

Source: Nissan

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