Does the latest measure from the European Union benefit Chinese electric cars?

The European Commission has decided to extend the deadline for meeting CO2 emission targets for cars, granting manufacturers an additional three years to reach the established goals.

Android Auto DOWNLOAD

This measure is part of the regulations that require all new vehicles to be zero emissions, with a compliance target of 100% by the year 2035. To incentivize manufacturers, a system of credits and fines related to the emissions of their vehicles is imposed.

The President of the Commission, Ursula von der Leyen, announced that, instead of assessing compliance based on their sales mix in 2024, the assessment will be based on the average emissions from 2025 to 2027.

The European automotive market can finally catch a break

This decision has been favorable for European car manufacturers, whose stock values, such as those of Volkswagen, Renault, BMW, and Mercedes-Benz, have gained momentum following the announcement.

However, the news has generated mixed reactions. While automobile associations are calling for even more flexibility, environmentalists and advocates for electric vehicles have expressed their disappointment, fearing that this extension may benefit Chinese electric car manufacturers.

Concerns in the European Union focus on the fact that this delay in emission targets could allow China to gain ground in a key market.

Despite the criticism, electric vehicle sales are expected to continue to rise in 2025, indicating that the electric mobility market is still developing.

Android Auto DOWNLOAD

With the possibility that European manufacturers will use this additional time to increase the production of electric vehicles, the European Commission seems to be seeking a balance between promoting the energy transition and not limiting the competitiveness of the local automotive industry.