Tag Archives: ICE cars

The future of PHEV cars

Since the EU passed a regulation banning the sale of ICE cars from 2035, European manufacturers have been trying to find a solution to resist the invasion of cheap Chinese cars. The price of EVs has started to rise and buyers have increasingly chosen hybrids. However, now PHEVs could be a problem for manufacturers.

A recent EU study showed that plug-in hybrids used electric motors between 70 and 85 percent of the time, but the reality was very different. A closer look at the data showed that drivers used the combustion engine more often than previously thought, lowering the use of electric motors to less than 50 percent.

The study showed that drivers did not charge the batteries as needed, but used combustion engines that emitted more CO2. Therefore, the EU adjusted the calculation of CO2 emissions of PHEVs in normal use, increasing the efficiency factor, the percentage that runs on electricity, and manufacturers extended the electric range to counteract this. However, manufacturers had to install more powerful charging systems (up to 50 kW) and report electricity consumption so that the EU could update its CO2 calculation model.

It should not be forgotten that EVs must account for at least 30 percent of total sales, which is currently almost impossible for most manufacturers. This could give an opportunity for manufacturers to attract a larger number of customers by reducing the prices of hybrid cars, but also bring a new headache because Asian manufacturers, which are leading in electrification, have greater opportunities compared to the competition.

Source: Automotive News Europe, Photo: Land Rover

EVs more popular than ICE cars in China

In 2020, the Chinese government set a goal for electric vehicles to account for half of new car sales by 2035, but at this rate, China will reach that goal a decade early. According to the latest data, sales of electric cars in China will reach 12 million units in 2024, surpassing cars with combustion engines for the first time ever.

The latest information says that in 2024, sales of cars with combustion engines could fall to less than 11 million units, which is 10 percent less than in 2023. That’s no surprise, considering China has big plans for EVs. Plug-in hybrids are expected to be a hit this year with 4.39 million units sold, rising to 6.05 million vehicles over the next eight years.

Predictions are that once the transition point is reached, electric vehicles will continue to grow and could exceed 18 million units by 2034. By then, sales of cars with combustion engines could drop to just 2.93 million.

What could worry the manufacturers of cars with combustion engines in China is that these vehicles will have very little space in the domestic market. In 2024, the market share of foreign cars fell to 37 percent compared to 64 percent in 2020. This shows that Chinese buyers are increasingly choosing domestic vehicles in the largest new car market on the planet, resulting in a reduction in a significant source of revenue for many manufacturers.

China, as the world’s EV leader, is slowly killing its competition. EV production is turning into a game of survival, and the winners are likely to be the manufacturers that can deliver quality vehicles at affordable prices. This will also mean the shutdown of some of the all-electric brands that have been present on the market for years.

One of the first victims in the cruel automotive world is the American brand Fisker. In 2023, Fisker had big plans, production of 40,000 electric vehicles, but only 10,000 left the production lines. The Ocean SUV has received mixed reviews, with Consumer Reports claiming that the promise has not been fulfilled, while regulators have addressed issues with brakes and doors that won’t open. Further complicating the situation for Fisker was the fact that the Ocean lost its place on the list of tax-deductible electric vehicles unless leased because it was manufactured outside of North America. Now, they are bankrupt.

Source: Reuters

Euro 7 will apply to EVs

Although the European Union planned to apply the new Euro 7 standards from 2026, increasing pressure from manufacturers forced the EU to postpone this decision until the end of the decade. This meant easing the existing Euro 6 norm, but also giving more time for adaptation. Now the European Parliament says that Euro 7 will apply to electric cars as well.

Europe is trying to eliminate ICE cars from its roads at all costs, and one of the steps is to ban the sale of ICE vehicles from 2035. For now, it seems almost impossible, but the European Parliament has established interim measures to continue reducing CO2 emissions.

If you’re wondering what kind of harmful emissions electric cars produce, here’s the answer. With the new regulation, the measurements will not only take into account the emissions from the exhaust pipes, but also the emissions of other particles that are also harmful to health, such as microplastics or microdust that is thrown out by the wear of tires or brakes. This measure will apply to all cars, regardless of their powertrain.

Euro 7 regulations will apply from 2030, and many analysts are convinced that they will not give the expected result. However, all manufacturers must adapt to the new emissions limit, and the WLTP protocol measures the pollution data of every new car in the European Union (CO2 and NOx particles). Any deviation from the legal regulations entails a penalty for each additional gram of CO2. This has already started to show certain consequences, and an example is the Honda Civic Type R with a price of more than 100,000 euros.

Of course, some electric car manufacturers are not happy with this decision, so the EU has proposed special measures that mainly relate to battery life. This means an additional investment of huge amounts of money in development, which will be a great financial pressure on European manufacturers who are currently struggling with competitors from China. Of course, all this will be paid by customers with higher car prices.

Source: Reuters