Renault CEO says city car prices could double in the next years
Pollution standards are becoming increasingly stringent
SUV sales continue to rise in Europe with 45% of registrations in March 2021. However, city cars are still holding their own and remain popular. However, their price could increase drastically in the coming years due to the Euro 7 standard.
This regulation, which is due to come into force in 2025, will undoubtedly impose draconian limits on the emission of fine particles. For internal combustion models, this will require a complete overhaul of the pollution control system, which will involve extremely costly modifications.
While these changes will not have a major impact on the price of luxury cars, they will have a significant impact on the prices of more affordable vehicles, particularly B-segment city cars. According to Renault CEO Luca de Meo, the prices of combustion-powered city cars could double for the Euro 7 approval.
Therefore, according to the CEO, the solution would be the total electrification of city cars in order to avoid these costly transformations. This is a good thing, as the cost of manufacturing batteries is also tending to decrease gradually thanks to new production methods.
Photo credits Renault