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Daily Newsletter

13 October 2023

Daily Newsletter

13 October 2023

ACEA still not happy with Euro 7 proposal

Further improvements needed

Graeme Roberts October 12 2023

The European parliament’s key vote on Euro 7 pollutant standards better reflects industry’s concerns compared to the European Commission’s proposal, but further improvements are still needed, the European Automobile Manufacturers’ Association (ACEA) said on Thursday.

“We have long been advocating for Euro 7 targets and testing conditions that do not make vehicles unaffordable nor jeopardise industry competitiveness – for little or no environmental benefit,” saidd ACEA director general, Sigrid de Vries in a statement. “The environment committee (ENVI) vote is an improvement over the commission proposal, but still falls short in key aspects.

“We should not underestimate the huge progress made by European vehicle manufacturers in reducing pollutant emissions from road transport over the past years. It is simply incorrect to describe Euro 6/VI vehicles as ‘highly polluting’ as some stakeholders do. Euro 6/VI regulations have delivered and are continuing to do so.”

Between the first Euro standard and the first version of Euro 6, emissions were slashed by over 90%, ACEA said. Euro 7 will deliver marginal further benefits, but far greater air quality improvements would be achieved by replacing older vehicles on EU roads with highly efficient Euro 6/VI models, in parallel with electrification.

Ahead of the plenary parliament vote next month, ACEA has called on MEPs to vote for a sensible and proportionate Euro 7 regulation.

"We have long been advocating for Euro 7 targets and testing conditions that do not make vehicles unaffordable nor jeopardise industry competitiveness – for little or no environmental benefit," ACEA said.

High upfront costs could be detrimental towards the growth of the off-highway EV market

The global off-highway electric market is expected to grow at a CAGR of 17.4% by 2030, per GlobalData. Despite the strong growth, high upfront costs may pose a challenge. Due to the high capacity of these vehicles, they consume large amounts of power from a number of battery packs installed on the vehicle, whose high cost in turn adds to the cost of the vehicle, thereby increasing the initial cost. However, governments worldwide are offering subsidies and tax exemptions in order to help customers to counter the initial purchase cost.

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