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Mitsubishi Joins Growing List of Automakers Raising Prices Amid Tariff Pressure

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Mitsubishi has become the latest automaker to announce a price increase as the industry grapples with the ripple effects of trade tariffs and inflationary pressures. Beginning tomorrow, the Japanese carmaker will implement an average price hike of 2.1% across its vehicle lineup.

The company attributes the increase to its “regular and ongoing review of pricing” designed to keep its models competitive within their respective segments. However, industry observers believe this move is a direct response to rising import tariffs, particularly the 25% levy on automotive imports first imposed under the Trump administration.

Notably, the price adjustment will not be applied retroactively and will exclude vehicles already on dealer lots—good news for buyers who act quickly.

The price revision will affect popular models such as the Outlander and Eclipse Cross. The Outlander, which currently starts at $29,645, will see its base price rise to approximately $30,268—an increase of $623. Meanwhile, the smaller Eclipse Cross will go from $26,545 to roughly $27,102, representing a $557 jump.

Although these changes may appear modest, they underscore a broader industry trend: manufacturers are increasingly passing on at least some of the cost burden from tariffs and supply chain challenges to consumers. Analysts suggest Mitsubishi may still be absorbing a significant portion of these costs, but further increases could loom if trade tensions persist.

Mitsubishi‘s pricing decision comes shortly after the company resumed vehicle deliveries to dealerships—a process that had been temporarily halted due to tariff complications. The resumption, coupled with the latest price adjustments, signals that Mitsubishi may no longer be expecting a swift resolution to ongoing trade disputes.

With this move, Mitsubishi joins a growing roster of automakers adjusting their pricing strategies. Ford recently raised prices by up to $2,000 on several of its Mexican-made models, including the Maverick, Bronco Sport, and Mustang Mach-E. Subaru has also bumped prices across most of its lineup, with increases ranging from $750 to $2,055. Even niche manufacturer Ineos has taken similar steps.

As the global automotive industry continues to adapt to an unpredictable economic and political landscape, consumers can likely expect more pricing changes in the months ahead.

Source: Reuters

News

Are EU Green Rules Killing Affordable Cars?

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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

News

Kia Walks a Tightrope in Europe’s Shifting Auto Market

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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