Jakarta, huutoanland Indonesia
—
The European Union plans to create a new category for
electric car
with technical specifications that are lighter and cheaper to produce to be used as capital to compete with Chinese manufacturers.
Nikkei Asia
explained that the European Commission plans to release a draft proposal for this category called ‘E car’ in the next few years after receiving approval from the main European Union institutions.
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This proposal is said to define this new category based on vehicle size, weight and engine capacity or equivalent.European Union member states will also discuss the vehicle tax exemption mechanism for this new class.
Until now, the European Union requires electric cars to be equipped with a system that detects driver drowsiness, maintains lane position and signals sudden braking.These requirements, designed for long-distance travel, have led to higher costs.
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“The overall vehicle setup … will be at a lower level which will lower costs because the vehicle is less complex,” said Beatrix Keim of the German Center for Automotive Research.
The selling price of cars in the E car category is predicted to fall by 10 percent to 20 percent to around 15,000 to 20,000 euros
The European Union imposes import duties of up to 45.3 percent on electric cars made in China.This new classification will allow European cars to compete better on price.
This would be a boon for European electric car developers, including Germany’s Volkswagen, European multinational Stellantis and France’s Renault.
The share of the European car market controlled by Chinese car manufacturers increased to 7 percent in the July-September quarter this year.Double the previous year, according to a survey by Germany-based Schmidt Automotive Research.
If we only look at electric cars, China’s car market share increased to 12 percent from 9 percent the previous year, with BYD as the leader.
Incentives such as development subsidies and tax credits for the electric car category will likely be conditioned on production within the European Union.
The conditions mean that BYD, which operates a factory in Hungary, will be the only Chinese automaker to enjoy such benefits.
In Japan, kei cars are limited by the government in terms of size, emissions and other attributes.The kei car category will account for 35 percent of new car sales in Japan by 2024.
The European Union has criticized the kei car category in the past, calling the segment a non-tariff barrier.
This new classification will influence the strategy of Japanese automakers focused on kei cars.They may be able to export some models to Europe without any specification adjustments.
Compact cars suitable for daily city driving are also attracting attention in the United States.Last Wednesday, US President Donald Trump announced that he had directed Transportation Secretary Sean Duffy to approve domestic production of “small cars.”
The announcement has opened up the potential for Japanese cars, which have been criticized for being too niche for export, to gain acceptance in the US market.
(fea)
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