The European Union is embarking on an energy transition that will have major consequences for the automotive industry, the most famous of which is the ban on the sale of internal combustion engines in 2035. However, it is not only this distant deadline that will be affected by the CAFE standards, which will be much more restrictive from 2025, but this challenge could also be a great opportunity for Citroën.
A known standard from 2018
From 2021, the sale of new cars will be subject to emission quotas that must not be exceeded or heavy fines will be imposed. These standards have been set at an average of 95 grams of CO², a standard that almost all manufacturers have managed to meet, thus avoiding heavy fines.
But from 2025 these CAFE standards will rise to 81 grams of CO2, a huge step that will require the sale of around 25% of electric cars to meet the quotas. And in the event of non-compliance, the fines will be high, amounting to €95 per additional gram and per car sold, which could amount to enormous sums for some, especially Dacia.
This is why these fines have been the subject of intense lobbying for several months by the ACEA (chaired by the head of the Renault group), which is fighting for a two-year postponement, even though the 81-gram threshold applicable in 2025 has been known to everyone since 2018! Manufacturers have therefore had seven years to prepare for this deadline, but while some are selling electric cars or Renault nostalgia at a high price, Citroën has been working hard to make electric cars accessible to everyone.tous.
A real opportunity for Citroën
From 2025, 25% of electric cars will have to be sold to meet CAFE standards and avoid fines. There are no miracles to achieve this: price is a driving factor, especially as purchase subsidies will be significantly reduced. The French are demanding, as 43% of them want to switch to an electric car, but 39% do not want to spend more than €20,000 on their car.
This is where Citroën's choice comes into play: with a C3 priced from €23,300 without compromising on equipment, living space, autonomy or comfort, the brand offers a versatile car that is unique in its segment.
Citroën also offers a complete range of electrified cars, including its hybrid range, which achieves remarkable emissions: 106 grams for a C4, for example, compared to 130 for a Renault Arkana! The brand thus offers a range that perfectly meets the needs of the French at affordable prices, while at the same time satisfying the requirements of companies that also need to reduce their emissions and who will find in the Citroën range enough to have high-performance, comfortable cars with limited emissions without any penalty.
These CAFE 2025 standards therefore represent a real business opportunity for Citroën, as it will not have to limit sales of thermal cars, which will not be the case for its competitors. Thus, to take the example of Dacia, the Romanian brand will be forced to reduce the volume of its sales of thermal cars in order to meet the 2025 quotas, in the knowledge that it could pay a fine of more than 1 billion euros, since it will largely exceed the quotas set. Citroën therefore has real opportunities to win new customers without worrying about meeting CAFE standards, as its range is one of the least polluting and most accessible.
In conclusion, 2025 will certainly be a difficult year in which it will be necessary to drastically increase sales of electric cars to around 25%, or 8 points more than today. With the C3 and C3 Aircross, the brand has a formidable weapon to convince customers to switch to pure electric. The C3 is the only multi-purpose saloon under €20,000 and the C3 Aircross the only electric urban SUV under €25,000. So if 2025 is a huge challenge for many manufacturers, it is also a unique opportunity for Citroën to win new customers.
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