A new car class should stimulate increased production of small electric cars. Not only could it increase the share of electric cars – it could also secure the future of the European automotive industry.
The EU has announced that it will create a new vehicle class between M1 (ordinary passenger cars) and L7E (heavy 4-wheel motorcycle). M1E will be a class for small electric vehicles. It is required that the length does not exceed 4,20 meters and the “on-the-road price” should be somewhere between 15.000 and 20.000 euros. There are also technical requirements regarding weight, engine power and safety. These have not yet been published. However, one requirement is of a political nature, namely that the vehicles must be manufactured in the EU.
Exactly one year ago, the Federal Republic of Germany stopped payments to a subsidy scheme for affordable electric cars. This led to a dramatic drop in demand in the country. However, major car companies in the EU must produce electric cars – regardless of demand – to meet the EU's CO2 requirements for the groups' total production. At the same time, imports from China are increasing.
The new M1E class will help increase the share of electric vehicles. Perhaps a compensation for the EU's recent decision to postpone the goal of all new cars being electric from 2035? Car manufacturers will be tempted with "Super Credits" where each M1E vehicle produced will be weighted as 1,3 zero-emission cars with regard to meeting the EU's CO2 requirements. Car manufacturers can therefore get away with producing fewer electric cars, the higher the share that satisfies M1E.
Another very important promise from the EU is that the M1E class scheme will last for a minimum of 10 years. The automotive industry needs this to be able to develop new car models.
We've written about it before. The 2035 target cannot be achieved with today's best-selling electric cars. They are too bulky (in terms of parking) and too expensive for European car buyers.
It is of little use to create a new vehicle class without a market. The EU has signalled that it wants to introduce incentives for owners of M1E vehicles, such as subsidies, tax breaks, reduced tolls, parking benefits and the possibility of using priority lanes. Concrete measures will likely be up to each individual country to decide.
It is uncertain whether there will be any benefits associated with the M1E class in this country. In any case, the scheme could bring more small, affordable, electric cars to the market – and some may find their way here. We do not know whether any of today's cars already qualify to be registered as M1E. It is likely that some electric models in the A and B segments will be adapted to fall within this category. For example, there are currently 2 variants of Citroen ë-C3 YOU that meets the price requirement.
It will also be interesting to see if we see completely new models developed like the M1E, not just equipment-ribbed versions of more expensive models with ultra-short range. What will an M1E car look like? In the Japanese Kei class, vans, family cars, 7-seaters and sports cars are built within far stricter requirements than the M1E. The European car industry is struggling. Do they have the resources to develop an M1E car with plenty of space, acceptable range within safety requirements? Maybe even a cool car? I imagine that the concept car in the main picture, Dacia, could be a good example. Citroen recently showed images of the ELO concept car – a 6-seater with room for rest, play and work. It has several smart solutions – including solutions to keep the weight down. I wouldn’t be surprised if it appears in the M1E class.
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As if there weren't enough electric cars already, the EU is going to force even more of them through a planned economy. These are several steps in the wrong direction, it would have been much better to scrap all electric cars on the market and go back to petrol and diesel cars, which are not only much better than electric cars, but are something the European car industry is experts at making. However, it is clear that the EU is actively looking to kill the European car industry, and it looks like they will succeed.