In Europe, prices for fuel cars are rising, while electric cars are becoming cheaper

Manufacturers have begun to adjust prices to boost sales of battery-powered cars, Reuters reports. The reason is the new requirements of the European Union, which will come into force on January 1, 2025. From now on, at least one-fifth of most brands’ sales must come from electric vehicles. Otherwise, they will face heavy fines.

Peugeot has realized prices of 500 euros (about 55 thousand rubles) for the entire model range, except for fully electric cars. Renault has increased the price of some gasoline cars: for example, the cost of the Clio SCE 65 has increased by 300 euros (about 33 thousand rubles). Both companies claim that the price adjustment is a consequence of inflation. Volkswagen has reduced the price of the ID.3 in several markets. In Germany it now costs less than 30,000 euros (3.3 million rubles).

Under new environmental regulations, about 22 percent of cars sold by brands must be electric. So far, as calculated by the European Automobile Manufacturers Association (ACEA), this is far from being achieved: electric cars account for only 13 percent of all sales.

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Only three companies operating in the region will avoid fines: Volvo, SAIC and Tesla. The rest will have to pay a total of 15 billion euros. The main blow will fall on the Volkswagen Group, whose situation is already difficult: sanctions are estimated at 7.7 billion euros. Next comes the Renault-Nissan-Mitsubishi concern with 1.7 billion, followed by Stellantis with 1.6 billion euros.

Price cuts designed to increase demand for expensive electric cars will cost companies dearly. The requirements are being tightened amid an industry crisis, with Europe’s largest manufacturer planning to cut wages and close factories, and tens of thousands of its employees going on strike.

Next train: new “battery-powered” products