European automakers are reducing prices on EVs while raising prices on their ICE models, all in hopes of avoiding hefty fines as the European Union’s new emissions rules tighten at the beginning of 2025.
On January 1, the EU will drastically lower its cap on automotive CO2 emissions, meaning at least 20% of all sales from most car companies must be electric models to avoid heavy fines, Reuters reports. This year, 13% of all new cars sold in the region have been electric, according to the ACEA.
“The gap is really big,” Marc Mortureux, the director of French car lobby PFA, told Reuters. He added that companies are now tasked with selling more EVs “at a time when political and economic uncertainties and declining EV subsidies are deterring sales.”
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