Surprising fact: one recent report notes that new truck registrations fell 6.3% in 2024 while electric truck sales stalled at just 2.3%.
The automotive vehicle sector now faces strain from sluggish demand for electric models and tighter climate rules. Manufacturers warn that engineering capacity, costs, and tight timelines are stretching resources as they adapt their plans to meet new emissions targets for vehicles.
Debate over Euro 7 sits inside the wider Green Deal and industrial policy. That debate questions the 2035 horizon and asks what comes next for makers and suppliers in the auto industry.
Regulatory penalties and complex testing could reshape strategy across vehicles and vans. Firms weigh investment choices as they monitor market signals and consumer uptake.
Key Takeaways
- Sluggish EV demand is colliding with tougher rules, heightening pressure on the market.
- Industry highlights limits in engineering capacity, costs, and realistic timelines.
- Euro 7 sits within the Green Deal and raises questions about the 2035 deadline.
- Regulatory penalties and testing could alter strategies for multiple vehicle classes.
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Sluggish EV demand meets tougher rules: the present state of Europe’s car market
Many manufacturers report softer order books for electric models, revealing a gap between policy ambition and buyer behaviour. This imbalance affects sales and forces boardrooms to rethink how quickly fleets can change.
Sluggish demand and charging infrastructure gaps weigh on sales and targets
Demand for some battery cars is uneven, and public charging remains patchy across regions. Patchy charging and depot solutions dent consumer confidence and complicate fleet planning.
The 2035 deadline in question: what a slower transition means for cars and vans
A slower transition risks stretching the 2035 end-date for new fossil-fuel cars and vans. Manufacturers say they need predictable rollout of chargers and affordable models to meet that target without sudden penalties.
Regulatory penalties and market risk across the vehicle sector
As standards tighten, firms model exposure to fines and measure risk by line. They balance compliance spending, supply chain limits and launch timing while keeping sales steady across their vehicles.
Firms argue that clear incentives, reliable charging and sensible rollout plans will reduce market risk and help the transition stay on track towards their target.
- Key pressure points: charging access, model affordability, residual values.
- Commercial focus: fleet managers respond to energy prices and incentives.
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EU Auto Leaders Call Emissions Targets Unrealistic: Euro 7 under fire
Executives argue the Euro 7 changes compress development timetables and push spending back into combustion work. They say the European Commission package tightens tests and durability rules to capture real‑world driving.
What Euro 7 changes: European Commission proposals on nitrogen oxide reduction and timing
The proposal aims for a 35% nitrogen oxide reduction for passenger cars and 50% for buses and lorries by 2035. If approved, it could enter into force in 2025 and add strict conditions for temperature and gradient compliance.
Industry sounds the alarm: costs per vehicle, engineering capacity and combustion focus
Manufacturers told Handelsblatt tests must be met “in any case”, raising design and validation burdens. Firms estimate up to €1,000 extra per car and warn that limited engineering capacity will be diverted from electric programmes to combustion calibration.
Germany’s transport minister Volker Wissing urged regulators to protect affordable mobility and keep synthetic fuels on the table.
| Aspect | Proposed change | Industry concern | Estimated impact |
|---|---|---|---|
| NOx reduction | 35% cars; 50% buses/lorries by 2035 | Marginal air‑quality gains vs cost | Higher compliance spend |
| Real‑world testing | Tightened temperature/gradient rules | Longer validation cycles | Up to €1,000 per vehicle |
| Timing | Possible 2025 entry | Compressed development windows | Shift from EV projects to combustion |
Negotiations will weigh health benefits against costs, regulatory penalties and the 2035 context. Stakeholders follow the debate closely and some site content may use cookies to explain positions. For wider political analysis see combustion car ban in trouble.
A political balancing act around the EU Green Deal and industrial policy
Senior state figures have urged caution, stressing that rules must be technologically and economically achievable.
In a letter to Chancellor Olaf Scholz, Winfried Kretschmann, Markus Söder and Stephan Weil asked for measured regulation to protect jobs and competitiveness in key carmaking regions.
Conclusion
Balancing air quality ambitions with cost, skills and infrastructure constraints will shape the next phase of reform. Policymakers in the European Parliament must weigh penalties and the 2035 horizon to ensure every vehicle, new cars, and van sold promotes cleaner air without excluding consumers. This involves aligning with climate targets and emissions laws across member states.
Negotiations will refine Euro 7 scope to prevent diverting engineering efforts into combustion work while electrification scales. Stricter rules will pair with stronger charging solutions, crucial for climate commitments across all member states.
Manufacturers will balance current sales with EV ranges, while regulators monitor real-world reductions. Public content will explain changes and may use cookies to enhance user experience and comply with emissions regulations as part of the broader plan to meet climate targets and ensure compliance with the law.
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