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The European Union is considering a new class of small and cheap electric vehicles

The introduction of the new E car class could be a powerful boost for European companies

Dec 11, 2025 11:51 108

The European Union is considering a new class of small and cheap electric vehicles  - 1

The European Union, faced with the growing power and aggressive pricing policy of Chinese electric car manufacturers, is working feverishly on the creation of an entirely new class of compact electric vehicles. Under the working name "E car", this initiative aims to introduce the simplest and most affordable electric vehicles to the market to fight back in the critical segment of urban transport.

The idea goes far beyond simple cost reduction. The goal is to create a separate regulatory category that would free manufacturers from some of the expensive and complex systems that are mandatory for high-speed cars designed for long journeys. Regulators want to pave the way for truly affordable urban machines.

According to information from Nikkei, the project is considering easing a number of technical requirements. For example, it is possible to drop the obligation for systems such as the one for detecting driver drowsiness, since they are less critical at low city speeds. This approach would create a segment of more basic, but adequate for everyday use electric vehicles, whose requirements are in sync with the real needs of consumers.

The price shock and the global resonance
Preliminary estimates indicate that the price of these new models should fit into the critical range of 15,000 to 20,000 euros. This is the threshold at which European car giants can compete effectively with Chinese brands, which are already flooding the continent with extremely cheap small EVs.

The discussions also cover potential parameters - dimensions, weight and architecture. An interesting fact is that if the new European class adopts certain standards, some Japanese key-cars could meet the requirements without the need for technical changes. If this is confirmed, Japan and its manufacturers would get a golden chance to increase their presence in the European market by exporting already ready-made serial models.

Who will benefit from the reform?

The introduction of the new "E car" class could be a powerful boost for European companies. Analysts from Automotive World note that concerns such as Stellantis, Renault and Volkswagen have the greatest potential to benefit from the reform. They are already actively working in the compact electric vehicle segment and have both existing platforms and models preparing for launch. However, it remains unclear whether their current or future proposals will fit the "E car" criteria, since the regulatory parameters have not yet been finally determined.

However, it should be borne in mind that the European political procedure is not fast. Even if the draft is published soon, real changes may only happen after a few years. A multi-stage process of approval, refinement and discussion between member states, manufacturers and regulators is ahead. Only then can the new class be put into actual production, which requires urgent action from Brussels.