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EU E-Car category targets affordable €15k–€20k city EVs

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The EU plans a new E-Car category to revive the A-segment with €15k–€20k city EVs, simplified standards and EU-made production, despite Italy's combustion push.
Michael Powers, Editor

The European Union is preparing an initiative that could reshape the small-car market. By the end of 2025, a new E-Car category is set to arrive: compact, low-cost city cars priced around €15,000–€20,000. The concept takes its cue from Japan’s kei cars—simple, lightweight, and designed for the mainstream.

EU Commissioner for Industrial Strategy Stéphane Séjourné said the primary objective is to boost demand for electric mobility. The new class aims to revive the near-vanished A-segment and make electric cars affordable to a much broader audience, shifting EVs from a premium choice to a practical everyday option.

Italy, however, struck a discordant note. Industry minister Adolfo Urso urged Brussels not to focus solely on electric power and to allow internal combustion or alternative fuels, arguing this would make E-Cars accessible to everyone. That stance runs counter to the core intent of the initiative: accelerating Europe’s move to battery-electric vehicles.

According to early outlines, E-Cars would come with simplified safety standards and limits on weight, size, and output to keep manufacturing costs down. In return, buyers could look forward to genuinely budget-friendly EVs built in Europe—a leaner spec sheet in service of a price point the market badly lacks.

Italy once again signals lobbying in favor of combustion powertrains. If the European Commission yields, the new category risks losing its purpose. Right now, Europe needs compelling, affordable battery cars, not another refuge for gasoline.