Europe is preparing a plan to save the automotive industry and make electric vehicles accessible.

The announcement of the ban on new internal combustion engine (ICE) cars from 2035 undeniably sent shockwaves through the entire automotive ecosystem. This date, which became a powerful symbol of the green transition, continues to disrupt an automotive world already under immense pressure. Caught between the slow growth of electric car sales, hampered by high prices and perceived charging infrastructure gaps, and the daily strengthening threat from global competitors, particularly from China, the European sector is gripped by doubt. In response to repeated calls from automakers, who have been warning of an industrial decline, Europe finally seems ready to act. Strong signals indicate that the European Commission may soon announce a relaxation of its strategy to boost a market gasping for air.

The european auto industry faces a wall of challenges

The current state of the automotive market in Europe is complex and, in many respects, concerning. The industry is suffering from an accumulation of constraints. On one hand, regulatory standards, especially the upcoming Euro 7 emissions rules, are becoming increasingly restrictive, leading to a significant rise in development and production costs. This cost increase is passed directly to the consumer, to the point where it has become nearly impossible to find a versatile new car under the symbolic €15,000 mark. On the other hand, the mandate to switch entirely to electric vehicles by 2035 is colliding with market realities: a large portion of customers is not yet ready to make the switch, whether for reasons of budget, range anxiety, or practical use.

This cocktail of difficulties has visible consequences: Europe is currently the only major automotive market in the world that has not returned to its 2019 pre-Covid sales levels. The multiple alarms raised by manufacturers, including Stellantis (Citroën's parent company), seem to have finally been heard in Brussels. During a recent meeting with the PFA (France's automotive industry platform), Stéphane Séjourné, the EU's Executive Vice-President for Prosperity and Industrial Strategy, sent a clear message. Stating that "2035 should not be a totem," he outlined a new roadmap to "save the auto industry" based on four key objectives:

• Boost volumes

• Use all solutions to decarbonise

• Protect our companies from unfair competition

• Meet consumer expectations

Moving towards technological neutrality and eased standards?

The core of this paradigm shift could lie in two essential adjustments. The first, and most significant, would be the adoption of true technological neutrality, a recurring demand from many industry players. Rather than imposing a single technology—namely, the battery-electric vehicle (BEV)—Europe could maintain its ambitious decarbonisation goals while leaving manufacturers free to choose the means to achieve them. This would open the door to other solutions, such as synthetic e-fuels or new-generation plug-in hybrids, allowing for a smoother transition that is better suited to diverse customer needs.

In parallel, the Commission might also grant a more flexible framework for standards, a strong request from manufacturers like Stellantis. The goal is to unlock the production and sale of hybrid or electric cars at much more accessible prices, potentially under €15,000. Enabling the return of new, safer, and cleaner vehicles at contained prices is seen as a crucial lever to accelerate the replacement of the existing, aging, and highly emissive car fleet. It is a "don't let perfect be the enemy of good" strategy: it would be better to massively replace old diesel cars with affordable small hybrids than not to replace them at all by waiting for an unaffordable EV.

What future for small electric cars? The paths under study

If Europe truly wants to "boost volumes" and "meet consumer expectations," the issue of price is central. The European Commission therefore seems determined to create a legal framework that allows for the return of cars in the €15,000 to €20,000 range, the very price bracket that made models like the Dacia Sandero a massive success. According to Reuters, the Commission could make announcements to this effect as early as December 10th, proposing a relaxation of standards specifically for small vehicles. This move also aims to prepare the ground against a potential tsunami of low-cost Chinese cars, even if that threat seems contained for now. A recent IFOP poll in France, for example, showed that barely 6% of drivers would be willing to buy a Chinese car.

The pressing question is what these future small cars will look like. Some suggest a solution similar to Japan's "Kei cars," the micro-vehicle category that benefits from a specific legal and tax framework. But to reach this price point, concessions will be unavoidable. Will we see "stripped-down" versions of current city cars, like a Renault 5 that compromises on certain passive safety features that are expensive to certify? Or will we see "scaled-up" versions of quadricycles, like a "bigger" Citroën Ami? The success of the Dacia Spring, despite its modest performance, proves that the public is willing to make compromises to gain access to electric mobility.

Manufacturers essentially have two main levers to pull to lower costs: safety or battery size. Citroën, with its new ë-C3, has already proven it is possible to dip below the €20,000 mark (before subsidies) by opting for a smaller battery pack that remains sufficient for many use cases. The future European legislation could therefore open the way for other trade-offs, particularly on those costly safety homologations.

A glimmer of hope expected on December 10th

Of course, we must wait until December 10th to know the full details of the proposals the European Commission will present. But the statements made by Stéphane Séjourné—whose title as Executive Vice-President for Prosperity and Industrial Strategy lends considerable weight to his words—are a source of hope. The stated intention is clear: to restore competitiveness to European manufacturers in the face of fierce global competition, while finally allowing consumers to have a choice of accessible electrified cars. For brands like Citroën, whose DNA has always been about democratising mobility, this potential easing of the rules could be a tremendous opportunity to reaffirm its core mission.