16:19 05-11-2025

EU plans a new small EV category for €15k–€20k city cars

The European Commission is preparing a new initiative to bring down the cost of electric cars and shore up Europe’s automakers amid intensifying competition from China. According to Industry Commissioner Stéphane Séjourné, the EU will unveil in December a new category of small electric vehicles that would let manufacturers launch affordable models priced between 15,000 and 20,000 euros.

The plan centers on creating an intermediate class between light quadricycles and conventional passenger cars. Today even tiny EVs must meet the same safety and equipment rules as bigger sedans, which pushes prices up. By tailoring standards to compact EVs, the reform aims to simplify their design and trim production costs — a pragmatic carve-out that could finally make no-frills city runabouts truly accessible.

The initiative has the backing of several European brands, including Renault, Stellantis and Volkswagen. François Provost of Renault suggested freezing current EU automotive regulations for 10 to 15 years to give the market time to build a durable segment of affordable urban EVs up to 4.2 meters long. A pause like that would give engineers a stable target instead of chasing a constantly shifting rulebook.

At an industry forum in Paris, Séjourné said the goal is to set a framework that would bring new compact EVs to market in the 15,000–20,000-euro bracket, signaling Brussels’ focus on affordability as a lever for wider adoption.

The announcement is expected on December 10. If adopted, the reform could become a pivotal step toward revitalizing Europe’s car market and restoring the competitiveness of local manufacturers in the face of China’s expanding EV presence. Done right, it has the potential to reset the price ladder for urban electrics and give European brands some much-needed breathing room.