KATHMANDU: The European Union is planning to introduce a new “Made in Europe” small electric car category to support regional automakers amid rising competition from affordable Chinese EVs.
Under the proposal, small electric cars built in Europe and below a set weight limit could receive special parking privileges, easier regulatory requirements, and higher subsidies.
Eligible vehicles would gain access to reserved parking and charging infrastructure, along with a 10-year exemption from new rules, including Euro 7 emissions and safety regulations due in 2026. The weight cap is still being discussed but is expected to be around 1.5 tons.
The move is part of a wider effort to ease pressure on Europe’s auto industry, which is facing challenges from Chinese imports, US tariffs, and slowing demand. European manufacturers remain relatively strong in the small-car segment, an area where Chinese brands have focused less.
The proposal, internally nicknamed “Sejournette”, also aims to help carmakers build more affordable compact EVs by reducing compliance costs. Brands such as Renault and Stellantis have pushed for lighter rules, while also seeking inclusion of existing small models.
The small-car plan will be presented alongside a review of the EU’s 2035 ban on new combustion engine sales. Options under discussion include extending the use of plug-in hybrids, range extenders, biofuels, and e-fuels, though no final decisions have been confirmed.
