Published by Global Banking & Finance Review®
Posted on November 4, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleThe EU plans to introduce a new category for affordable small electric cars in December to boost the market and counter Chinese competition.
PARIS (Reuters) -The European Commission aims to announce the creation of a new category of affordable small electric cars in December in an effort to counter Chinese competition and revive the European market, an EU commissioner said on Tuesday.
WHY IT'S IMPORTANT
The Commission has been working on creating an intermediate category between quadricycles that weigh a few hundred kilograms and all other cars, so that small electric vehicles no longer have to include as much safety equipment and technology as a large saloon car. So far, the timeline of such a reform was uncertain.
CONTEXT
Several carmakers have been pushing for regulatory change to support sales of small electric vehicles made in Europe, at a time when Chinese brands are starting to gain market share on their turf. Renault Group CEO François Provost recommended on Tuesday that automotive regulations in Europe befrozen for 10 to 15 years to encourage the emergence of thiscategory, which would include cars up to 4.2 metres long.
KEY QUOTES
"The goal for manufacturers is to bring new small vehiclespriced between 15,000 and 20,000 euros to the market, and sinceregulatory constraints also factor into the price, we are goingto create this regulatory framework", European Commissioner for Industry Stephane Sejourne said at the Automotive Industry Day in Paris.
He added that he aims for the new framework to be includedin the Commission's announcements on December 10.
(Reporting by Gilles Guillaume, writing by GV De Clercq; Editing by Rosalba O'Brien)
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and upholding the EU treaties.
Electric vehicles (EVs) are cars that are powered by electric motors instead of internal combustion engines, using electricity stored in batteries.
Sustainability in the automotive industry refers to practices that reduce environmental impact, such as producing electric vehicles and using renewable energy sources.
Regulatory frameworks are sets of rules and guidelines established by authorities to govern specific industries or sectors, ensuring compliance and safety.
Affordable vehicles are significant as they make transportation accessible to a broader population, promoting mobility and economic growth.
Explore more articles in the Headlines category
