EU regulations hit tiny cars. Europe goodbyes iconic models

The fresh regulations introduced by the European Union are radically changing the scenery of European automotive. The tiny car segment, which has been a pillar of urban mobility for decades, is peculiarly affected. They are now disappearing from the marketplace – not due to deficiency of demand, but due to the expanding cost of adapting to EU standards.

Mandatory safety systems: costly revolution

Since last year Each fresh vehicle registered in the EU must be equipped with a set of advanced safety systemsincluding:

• emergency braking system
• Driver fatigue sensors
• reverse assistant
• automatic emergency braking lamps
• so-called black box (accident data recorder)

Although for larger, more costly cars, the introduction of these systems is not a immense problem, in the case of small models costing their implementation drastically affects the cost-effectiveness of production. As he notes Luca De Meo, the head of Renault, it is these regulations that are 1 of the key factors in the marginalization of the urban car segment.

Euro 7: the death of tiny cars by ecology

Another blow for tiny cars will come on July 1, 2025When the norm comes into force Euro 7, tightening exhaust emanation limits. The fresh emanation thresholds make it unprofitable to adapt existing structures to requirements.

As he made clear Thomas Schäfer, president of Volkswagen: ‘For Volkswagen Polo it is over’. This is not a single case – further models are being withdrawn from the market, including:

• Kia Rio
• Peugeot 108
• Audi A1
• Ford Fiesta
• Fiat 500 with petrol engine
• Smart Fortwo

Industry experts are alerting: this Only the beginning.

Lower CO2 emanation limits – higher prices for drivers

The EU's climate policy implies further tightening. From 2025 CO2 emissions are allowed to fall from the current 116 g/km to 94 g/km. Producers who do not fit in the limit will be charged with financial penalties, which forces:

• expensive investments in fresh technologies,
• further increase in vehicle prices,
• Focus on models that can make more profit.

Electric cars They were expected to be a consequence to environmental requirements, but cheap models are inactive unavailable to the average consumer. conventional tiny cars vanish and fresh – electrical – are out of the scope of many families.

Section B in reverse: data is unambiguous

Just look at the data to realize the scale of the problem. The average price of the fresh car from section B in 2013 was 13 200 euros. In 2024 – already over 22 500 euro. This. 73 percent increase in just a decade. The main reason is:

• costs of gathering increasingly demanding environmental standards,
• the work to equip the vehicle with advanced safety systems.

For many consumers The acquisition of a fresh tiny car becomes unavailable, which is besides seen after purchasing decisions.

A dramatic decline in sales

According to company data Jato Dynamics, tiny car sales in Europe fell by over 50% between 2019 and 2023. Reason? Small models cease to be profitable if they do not accomplish mass sales. However, the mass scale was the basis for the profitability of this segment.

President Renault warns that By 2030 they will enter into force all year from 8 to 10 fresh regulations affecting the car market. specified a fast pace of change makes manufacturers They can't keep up with the adjustmentand the smallest models become the first victims of these trends.

Increasing inequalities in the automotive market

On the 1 hand, the EU promotes green, low-carbon means of transport. On the another hand – introduces regulations that push the most affordable vehicles out of the market. This leads to a fresh gap:

• more wealthy drivers can afford cars according to the latest standards,
• others are forced to buy utilized vehicles or to quit mobility.

Experts inform that this direction of change can deepen transport exclusion, especially in little urbanised regions.

Future prospects: do tiny cars inactive have a chance?

Come on. small cars are ecological, inexpensive in operation and perfect for citiesTheir future is in question. Manufacturers are increasingly focusing on large viable models that are easier to equip with modern systems and better absorb the costs of fresh technologies.

For drivers this means that:

• reaching for more costly electrical models (if they can afford it),
• stay with older, utilized vehicles,
• no longer owning a car for public transport or car sharing.

Some producers are inactive considering developing new platforms for inexpensive electrical modelsbut this requires immense investments and uncertain marketplace prospects.

"Small cars vanish from the marketplace as requirements for vehicle mass and technology levels increase all decade" Luca De Meo concludes.

Will the urban car section be reborn? This depends on future regulatory decisions and real investment in affordable mobility solutions.