EU CO2 Standards Tightening in 2025: OEMs Face Increased Pressure to Meet Ambitious Targets

Get ready, because the European Union is really tightening the screws on car makers starting in 2025. The rules about CO2 emissions are getting a lot stricter, and if companies don't hit these new, tougher marks, they're looking at some serious financial penalties. This means automakers are under a lot more pressure to change how they sell cars and what kinds of cars they push to customers. It's a big shift, and we're going to see how it plays out.

Key Takeaways

• New EU CO2 emission limits for cars and vans kick in from 2025, demanding a significant drop in average emissions per kilometer.

• Automakers must drastically increase their sales of electric and plug-in hybrid vehicles to meet these tougher standards and avoid hefty fines.

• Some manufacturers, like Volkswagen and Ford, face particularly big challenges due to vehicle weight and current sales mixes.

• Strategies like CO2 pooling and adjusting pricing for both combustion engine and electric models are being used to try and meet the targets.

• Despite efforts, there's ongoing debate and concern within the industry about whether the targets are too ambitious and the potential economic impact.

EU CO2 Standards Tightening in 2025: OEMs Face Increased Pressure to Meet Ambitious Targets

New CO2 Emission Limits for Passenger Cars and Light Commercial Vehicles

Get ready, because starting in 2025, the European Union is really cranking up the heat on car manufacturers when it comes to CO2 emissions. For new passenger cars, the average emissions allowed per kilometer are dropping significantly. We're talking about going from an average of 116 g/km in 2024 down to below 93.6 g/km in 2025. That's a pretty big jump, about a 19% reduction. It's not just cars, either. Light commercial vehicles, those vans up to 3.5 tons, are also getting stricter limits, moving from 185 g/km down to 154 g/km, a 17% cut. These aren't just suggestions; missing these marks comes with some serious financial penalties.

Significant Reduction Targets for Average Emissions

So, what does this all mean? Basically, carmakers need to sell a lot more electric and plug-in hybrid vehicles. The EU is pushing for zero-emission vehicles to make up at least 20% of a manufacturer's sales, a big jump from the current 13%. This is happening even as some countries are cutting back on EV subsidies, which makes things trickier. It feels like a bit of a balancing act for the automakers.

The push for lower CO2 emissions is forcing a major shift in the automotive industry, requiring significant investment in new technologies and a change in sales strategies to meet regulatory demands.

Implications of Exceeding CO2 Limits and Potential Fines

Failing to hit these new targets isn't just a slap on the wrist. The fines are calculated based on how much you go over the limit – 95 euros for every gram of CO2 per kilometer over the target, multiplied by the number of new cars registered. For the big car companies, this could add up to hundreds of millions of euros. It's a serious financial risk that nobody wants to take. Some companies, like Volkswagen and Ford, are expected to have a tougher time meeting these goals, partly because their vehicles tend to be heavier, which affects their individual targets. On the flip side, companies like Toyota and BMW might have a slightly easier time, needing more moderate reductions. It really highlights how different manufacturers are positioned to handle these new rules.

OEM Strategies for Achieving 2025 CO2 Compliance

The European Union's CO2 standards are getting tougher in 2025, and car manufacturers are feeling the heat. Meeting these new, stricter limits means automakers need to get creative and really push their strategies. It's not just about making a few more electric cars; it's a whole shift in how they plan sales and manage their fleets.

Increasing Sales of Battery Electric and Plug-in Hybrid Vehicles

This is probably the most obvious strategy. To bring down the average CO2 emissions across their entire lineup, manufacturers have to sell more zero-emission vehicles (ZEVs). We're talking about battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The EU is pushing for a significant increase in the share of these vehicles in the overall sales mix. For some manufacturers, this means their ZEV sales might need to jump from around 13% to as high as 20% or even more, depending on their current fleet average and vehicle weight.

• Boosting BEV and PHEV production: Automakers are ramping up production lines for electric and plug-in hybrid models.

• Introducing new ZEV models: Expect to see more diverse and appealing electric options hitting the market.

• Focusing on fleet sales: Commercial fleets are often early adopters of ZEVs, so manufacturers are targeting these buyers.

The pressure to sell more electric vehicles is immense. It's not just about meeting a target; it's about fundamentally changing the product portfolio and consumer perception.

Leveraging CO2 Pooling and Emission Certificate Trading

Not everyone is in the same boat when it comes to CO2 emissions. Some manufacturers are naturally ahead of the curve, perhaps because they've invested heavily in ZEVs earlier or have a product mix that's already quite clean. This creates an opportunity for 'CO2 pooling'. Essentially, manufacturers with lower-than-required emissions can partner with those who are struggling. They can share emission credits or pool their fleets to average out the CO2 output. This has become a really important tool, especially for those facing significant hurdles in reducing their fleet average. It's a way to balance the books without solely relying on a massive, immediate shift in sales.

Implementing Price Adjustments for ICE and Electric Models

Pricing is a powerful lever. To encourage the sale of cleaner vehicles and discourage the purchase of higher-emission ones, manufacturers are expected to adjust their pricing strategies. This could mean making electric vehicles more attractive price-wise, perhaps through discounts or by passing on savings from reduced battery costs. Conversely, internal combustion engine (ICE) vehicles might see price increases, making them less appealing to buyers. This delicate balancing act aims to steer consumer demand towards the greener options that are essential for meeting the 2025 targets. It's a complex dance, trying to maintain profitability while nudging customers towards a specific purchasing behavior. You can read more about the progress of European heavy-duty vehicle manufacturers in meeting their environmental goals.

Challenges and Difficulties for Specific Automakers

So, not every car company is in the same boat when it comes to hitting these new EU CO2 targets for 2025. Some are finding it a bit tougher than others, and it really comes down to their current lineup and how quickly they can shift gears.

Volkswagen and Ford Face Significant Hurdles

It looks like Volkswagen and Ford are in for a bit of a bumpy ride. These guys have traditionally relied heavily on internal combustion engine (ICE) vehicles, and their average vehicle weight tends to be on the higher side. This means their individual CO2 targets are set pretty high, making the required reduction even more of a challenge. They've got a lot of ground to cover, and frankly, it's going to take some serious effort and a big push in electric vehicle sales to get them where they need to be. It's not just about selling a few more EVs; it's about a substantial shift in their sales mix.

Toyota and BMW's Moderate Reduction Requirements

On the flip side, Toyota and BMW seem to be in a more manageable position. While they still need to reduce their average emissions, the numbers aren't as daunting as for VW or Ford. This is likely due to a combination of factors, perhaps a slightly better mix of hybrid and more efficient ICE models, or maybe a more aggressive early adoption of some electric vehicles. They're not out of the woods yet, but the path to compliance looks a bit clearer for them. It's still going to require smart planning and execution, but the pressure might not be as intense.

Impact of Vehicle Weight on Individual CO2 Targets

Here's something interesting: the EU's CO2 targets aren't one-size-fits-all. They actually take vehicle weight into account. Heavier vehicles naturally have higher CO2 emissions, so manufacturers with a lot of big SUVs and trucks in their lineup get a higher individual target. This sounds fair, but it also means that companies like Volkswagen and Ford, which tend to sell heavier vehicles, have a steeper climb to meet their adjusted targets. It's a complex system, and understanding these nuances is key to seeing why some automakers are sweating more than others.

The automotive industry is really feeling the squeeze. With these new CO2 rules coming into effect, plus a general slowdown in the electric vehicle market and tough competition, carmakers are having to get really creative. It's not just about building greener cars; it's about figuring out how to sell them and how to manage the financial fallout if they don't hit the mark. The whole landscape is shifting, and it's making things pretty complicated for everyone involved.

Here's a quick look at how some manufacturers stack up:

Manufacturer	2025 Target (g/km)	Notes
Volkswagen Group	~121	Higher target due to vehicle weight, significant reduction needed.
Ford	~124	Similar challenges to VW, facing substantial reduction requirements.
Toyota	~105	Moderate reduction needed, potentially more manageable.
BMW	~106	Moderate reduction needed, path to compliance appears clearer.

The Role of Electric Vehicle Sales in Meeting Targets

So, the big question is, how are car companies actually going to hit these new, tougher CO2 limits coming in 2025? A huge part of the answer lies in selling more electric cars. It's not just a suggestion; it's pretty much a requirement.

Required Increase in Zero-Emission Vehicle Sales Share

Starting in 2025, the EU is really pushing for automakers to have at least 20% of their sales come from zero-emission vehicles (ZEVs). That's a pretty big jump from where we are now, which is around 13% on average. If you don't sell enough of these cleaner cars, you're looking at some hefty fines. It's like a mandatory quota, and companies need to figure out how to meet it.

Impact of Subsidy Cuts on EV Adoption

Here's a bit of a snag: while the EU wants more EVs, some governments have been cutting back on subsidies for buying them. This makes things trickier. When the financial help goes away, people might think twice about buying an electric car, especially if the upfront cost is still higher than a gas-powered one. This slowdown in EV sales makes it even harder for manufacturers to reach that 20% target.

The push for cleaner cars is real, but the economic reality for buyers is also a major factor. If the cost savings aren't clear or immediate, people will stick with what they know.

Analysis of BEV and PHEV Sales Mix Scenarios

Automakers are looking at different ways to balance their sales. Some might need a 37% share of battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) if they don't offer regular hybrids. But if they have a lot of regular hybrids, that number could drop to around 23%. It really depends on what kind of cars they already make and sell. For example, if a company sells a lot of heavier vehicles, their individual CO2 target is actually higher, which can be a bit of a double-edged sword. They might need a slightly lower percentage of EVs, but they still have to sell a lot of them.

Here's a rough idea of what it could look like:

Vehicle Type	Scenario 1 (No Regular Hybrids)	Scenario 2 (55% Regular Hybrids)	Target Reduction Needed
BEV/PHEV Sales Share	37%	23%	Significant

It's a complex puzzle, and companies are trying to figure out the best mix to avoid those penalties while still making a profit.

Market Dynamics and Consumer Behavior Shifts

Things are getting interesting in the car market, and it's not just about the new CO2 rules. Automakers are really trying to steer us, the buyers, in certain directions with their pricing. It's like they're playing a big game of chess, trying to get us to buy more electric cars without making it too obvious.

Automakers Adjusting Pricing Strategies to Steer Demand

So, what's the plan? Well, expect electric vehicles (EVs) to get a bit cheaper, while those good old gasoline cars might see their prices creep up. It makes sense, right? They need to hit those CO2 targets, and making EVs more attractive is a big part of that. Some analysts think this could mean fewer discounts on gas-guzzlers and a bigger push for battery-electric vehicles (BEVs). It's all about shifting the sales mix. Plus, with battery costs coming down a bit, they might have some room to play with prices. They're also looking at using different types of batteries, like LFP, which are cheaper. It's a whole balancing act to stay profitable while meeting these new rules. The goal is to make EVs more accessible to everyone, not just early adopters. This is a big shift from how things have been for a while, and it's happening fast. The push for more affordable electric vehicles is definitely on.

Potential for More Affordable Electric Vehicles

This pricing shuffle could really change things. If EVs become more budget-friendly, more people might consider making the switch. It's not just about the environment; it's about making the numbers work for consumers too. We might see smaller, more affordable EV models hitting the market in greater numbers, which would be a good thing for mass adoption. It’s a strategy to get more people into EVs without relying solely on government handouts.

Skepticism Regarding the Effectiveness of Price Increases

But will it work? Some folks are a bit skeptical. Will jacking up the prices of gasoline cars really push people into EVs, or will they just hold onto their current cars longer? It's a tricky balance. People are also watching to see if these price changes are genuine or just a temporary tactic. The automotive industry is asking for urgent relief measures as they navigate these complex changes. It's a tough market out there, and consumers have a lot of choices. Plus, with the economy being a bit shaky, people might be hesitant to spend more on a new car, no matter the type. It's a lot to consider for everyone involved.

Criticism and Concerns Regarding EU Regulations

Look, nobody likes being told what to do, especially when it comes to something as big and expensive as buying a car. And the auto industry is definitely feeling the heat from these new EU CO2 rules kicking in for 2025. Some folks in the car business are pretty vocal about it, saying Brussels is asking for the impossible.

Automakers Argue Targets Are Too Ambitious

It’s not just a little nudge; these new CO2 limits are a pretty big jump. For passenger cars, the average emissions need to drop from 116 g/km in 2024 to under 93.6 g/km by 2025. That’s a nearly 20% cut! For light commercial vehicles, it’s a 17% reduction. Automakers are saying, "Whoa, slow down!" They point out that the electric vehicle market isn't growing as fast as everyone hoped, and they're worried about not being able to sell enough EVs to balance out the emissions from their gasoline and diesel cars. One executive even sarcastically asked if the EU wanted them to start making horse-drawn carriages instead of cars. It’s a tough spot when you’re trying to meet these goals but the market isn't quite there yet.

Calls for Relaxation of 2025 CO2 Standards

Because of these challenges, there's a growing chorus of voices asking the EU to ease up, at least for now. The European Automobile Manufacturers’ Association (ACEA) has formally asked the European Commission for some "urgent relief measures." They’re saying that things like a lack of charging stations, high manufacturing costs compared to other regions, and general economic uncertainty are making it really hard to comply. Some politicians are also pushing to review these rules sooner rather than later, suggesting the current timeline might be too aggressive given the current state of the EV market. It feels like a bit of a standoff, with the industry asking for breathing room and the EU sticking to its climate goals.

Concerns About Financial Penalties and Industry Impact

And let’s talk about the money. If carmakers don't hit these targets, the fines are no joke. We're talking potentially billions of euros. For example, a fine could be calculated as 95 euros for every gram of CO2 over the limit, multiplied by the number of new cars sold. For big car groups, that adds up fast. This financial pressure is a huge concern. It could mean higher prices for consumers, or even force some smaller players out of the market. There’s also the worry that these strict rules, combined with other global economic issues and competition from Chinese EVs, could really hurt the European auto industry as a whole. It’s a lot to juggle, and the fear is that the industry might not be able to handle it all without some serious consequences.

The Revival of CO2 Pooling as a Compliance Tool

So, the EU's really tightening up those CO2 rules for 2025, and car companies are scrambling a bit. One of the older tricks making a comeback is something called CO2 pooling. Basically, it's a way for manufacturers to work together to meet those tough average emission targets. Think of it like a group project for reducing carbon footprints.

How CO2 Pooling Works for Manufacturers

Here's the gist: manufacturers who are doing really well with low emissions, like those selling a lot of electric cars, can essentially sell their 'emission credits' to companies that are struggling to meet the targets. It's a bit like trading. The companies that are ahead get some extra cash, and the ones that are behind get a way to avoid those hefty fines without having to drastically change their sales overnight. It's a financial mechanism to balance out the emissions across different automakers.

Manufacturers Partnering for Emission Credits

We saw this happen before, back in 2021, when FCA teamed up with Tesla and Honda. Now, analysts are predicting a big comeback for this strategy. Companies like Volkswagen and Ford, who are finding it tough to hit the 2025 goals, might look to partner with EV leaders like Tesla or Volvo. It's estimated that if these struggling companies teamed up with the leaders, they could potentially reduce the number of battery electric vehicles (BEVs) they need to sell by a significant chunk – maybe even around 36% fewer BEVs, according to some estimates. That's a pretty big deal when you're trying to hit those ambitious sales numbers.

Potential for Reduced BEV Sales Through Pooling

This is where it gets interesting for the market. If pooling becomes a popular solution, it could mean that some manufacturers might not need to push as hard on selling pure electric vehicles as they initially thought. Instead of needing, say, a 37% share of BEVs and plug-in hybrids (PHEVs) in their sales mix, they might be able to get by with a lower percentage, maybe around 18% or 23%, especially if they also sell a good number of regular hybrids. It's a way to smooth out the transition and make the targets seem a little less daunting, at least in the short term.

The EU's CO2 regulations are pushing automakers to find creative solutions. CO2 pooling offers a financial pathway for manufacturers to manage their average emissions, potentially altering the immediate pressure to sell a very high percentage of electric vehicles.

Importance of Continuous CO2 Monitoring and Analysis

Keeping a close eye on CO2 emissions isn't just a good idea anymore; it's pretty much essential for carmakers trying to hit those 2025 EU targets. Think of it like checking your bank account regularly instead of waiting for the end of the month to see if you're broke. You need to know where you stand all the time.

Monthly Monitoring for Strategic Sales Adjustments

Automakers really need to get into the habit of tracking their CO2 output on a monthly basis. This isn't just about ticking a box; it's about making smart moves with sales. By looking at the numbers every month, companies can figure out which markets or specific vehicle types are helping or hurting their average emissions. This lets them tweak their sales strategies on the fly, giving them enough time to actually do something about it before it's too late. It's all about staying ahead of the curve.

Identifying Market Segments with CO2 Impact

Not all cars contribute to CO2 emissions in the same way, and not all markets behave the same either. Continuous monitoring helps pinpoint exactly where the problems and successes are. Are SUVs in a particular country pushing the average up too much? Are sales of smaller, more efficient cars lagging in another region? Understanding these details allows for targeted actions. For instance, a company might decide to push promotions on lower-emission models in areas where they're falling behind, or perhaps adjust inventory to favor more electric vehicles where demand is surprisingly strong. It's about being precise with your efforts.

Guiding Sales Strategies Towards Compliance

Ultimately, all this monitoring is about one thing: compliance. The data gathered shouldn't just sit in a report. It needs to actively guide how the sales teams operate. If the numbers show a company is trending towards exceeding its CO2 limits, sales strategies must shift. This could mean prioritizing the sale of battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), even if it means slightly lower profit margins on those specific sales. It might also involve adjusting marketing efforts to highlight the benefits of these cleaner options. The goal is to steer the entire sales operation towards meeting those tough EU standards, avoiding hefty fines. It's a proactive approach to a complex problem, and frankly, it's the only way to manage the situation effectively. You can't just hope for the best; you have to plan for it. The data from an exhaust gas analyzer can be a key part of this process.

The constant pressure from evolving environmental regulations means that automakers can no longer afford a passive approach to emissions management. Regular, detailed analysis of CO2 performance is now a core business function, directly influencing sales targets, marketing campaigns, and product mix decisions to ensure regulatory adherence and long-term viability.

Factors Hindering EV Market Growth in Europe

Slowing Electric Vehicle Sales Momentum

So, it turns out the electric vehicle (EV) boom in Europe might be hitting a bit of a speed bump. After a period of really strong growth, sales have started to level off, and in some cases, even dip a little towards the end of 2023. This slowdown is a big deal because it puts a lot of pressure on automakers trying to meet those tough new CO2 targets the EU has set for 2025. It's not quite the smooth transition everyone hoped for, and frankly, it's making things complicated for the industry. The European Automobile Manufacturers’ Association (ACEA) has even asked the EU for some help, pointing out that the market for electric cars is actually shrinking, which is the opposite of what they need right now. They're saying the industry is trying its best, but it's tough when the market isn't cooperating. It's a bit of a head-scratcher, honestly.

Competition from Chinese EV Manufacturers

Another big piece of the puzzle is the increasing presence of Chinese EV makers in the European market. They're bringing a lot of new models, and some of them are quite competitive on price. This definitely adds to the pressure on European car companies, who are already dealing with high production costs and the expense of developing new electric technology. The European Commission is even considering slapping extra tariffs on these imported vehicles, which shows just how much of a concern this competition has become. It's a tricky situation, balancing fair competition with protecting local industries. Some EU countries are for these tariffs, others aren't so sure, so it's a real debate happening right now.

Lack of Charging Infrastructure and Incentives

Let's be real, charging up an EV still isn't as simple as filling up a gas tank. While things are improving, the charging infrastructure across Europe isn't quite where it needs to be for mass adoption. Finding a working, available charger, especially on longer trips, can still be a hassle. Plus, some of the government incentives that really got people excited about buying EVs in the first place are starting to fade. When those subsidies get cut, it makes the upfront cost of an electric car feel a lot higher, and that's a major hurdle for a lot of potential buyers. It's tough to convince people to switch when the practicalities and the price aren't quite there yet. The ACEA has made it clear that things like charging stations and affordable energy are missing pieces needed for a real boost in zero-emission vehicle sales.

The push towards electric vehicles in Europe is facing headwinds from several directions. A slowdown in sales momentum, intense competition from international manufacturers, and persistent gaps in charging infrastructure and financial incentives are all contributing to a more challenging market than anticipated. These factors combine to create a complex environment for automakers striving to meet increasingly stringent emissions regulations.

It's not just about having the cars; it's about making the whole experience of owning and running an EV easy and affordable for everyone. We're seeing some new, cheaper EV models coming out, which is a good sign, but there's still a way to go. The industry is really hoping for more support, like better charging networks and maybe some renewed financial help, to really get things moving again. It's a collective effort, they say, involving the EU, member states, and the car companies themselves. The goal is big – a carbon-neutral economy – but getting there requires sorting out these practical issues. The current average of new registrations for electric cars in the EU is around 15.6%, which is a decent chunk, but not enough to comfortably meet future targets without addressing these growth hindrances. This shift to electric is happening, but it's definitely not without its bumps in the road.

Broader Economic and Geopolitical Influences

It's not just about the cars and the CO2 numbers, you know? The whole car industry is getting squeezed from a bunch of different directions, and it's making things really tricky for automakers trying to hit those 2025 targets. Think about it – the global economy is a bit shaky right now. People aren't exactly rushing out to buy new cars when they're worried about their jobs or how much groceries cost. This slowdown is hitting car sales pretty hard across the board.

Impact of Weak Global Economy on Car Sales

This economic uncertainty is really putting a damper on overall business. We've seen new car registrations drop significantly in places like Germany and across the EU. It's not just a small dip; it's a noticeable slump. Experts aren't really expecting things to pick up much either, which means fewer cars being sold overall. This makes it harder for manufacturers to sell enough of the cleaner vehicles they need to meet those average emission targets.

Automotive Industry's Dependence on China

Then there's the whole China situation. For years, the Chinese market was a huge growth engine for European car companies. They did a massive chunk of their business there, and it really helped boost profits. But now, demand in China is faltering. This is a big problem, especially for companies like Volkswagen, because they've relied so heavily on that market. When sales slow down there, it hits them much harder than if they had a more balanced global sales approach.

Potential Tariffs on Chinese Electric Vehicles

Adding another layer of complexity, there's talk about the EU potentially slapping higher tariffs on electric vehicles coming from China. The idea is to protect European carmakers from what some see as unfair competition. However, this is a really divisive issue among EU countries. If these tariffs go through, it could change the pricing and availability of EVs in Europe, which might affect how quickly consumers can switch to electric, and in turn, how automakers meet their own CO2 goals. It's a real balancing act.

The automotive sector is caught between a rock and a hard place. Stricter environmental rules are pushing for a faster shift to electric, but economic headwinds and global trade tensions are making that transition more challenging and unpredictable than anyone anticipated.

The Road Ahead: Navigating 2025's CO2 Hurdles

So, 2025 is shaping up to be a big year for car companies in Europe. The EU's new CO2 rules are definitely going to make things tougher, especially for manufacturers like Volkswagen and Ford who have bigger, heavier vehicles. It's not just about selling more electric cars; it's about a whole shift in strategy. We're seeing carmakers already playing with prices, making gas cars pricier and hopefully EVs more attractive. Plus, things like pooling emissions with other companies or even just selling smaller, cheaper models could become more common. It's going to be interesting to watch how everyone adapts to these new demands and whether the market can keep up.

Frequently Asked Questions

What's changing with EU CO2 rules for cars in 2025?

Starting in 2025, the EU is making car companies produce cars that release much less carbon dioxide (CO2). For regular cars, the average CO2 emissions must drop significantly, and for smaller vans, there's also a big cut. If carmakers don't meet these new, tougher goals, they'll have to pay big fines.

How can car companies meet these new CO2 limits?

To meet the new rules, car companies need to sell a lot more electric cars (like battery-powered ones) and plug-in hybrids. They might also work together with other companies to share emission credits or adjust the prices of their cars, making electric ones more attractive and gasoline/diesel ones less so.

Which car companies might have the hardest time with the new rules?

Some companies, like Volkswagen and Ford, are expected to face bigger challenges in meeting the new CO2 targets. This is partly because their cars tend to be heavier, and the rules take vehicle weight into account. Other companies like Toyota and BMW might have an easier time because their required reduction targets are less demanding.

Why are electric car sales so important for meeting these targets?

Electric cars produce zero tailpipe emissions, meaning they don't release CO2. To reach the EU's overall lower average CO2 emissions, carmakers must significantly increase the percentage of electric and plug-in hybrid vehicles they sell compared to gasoline and diesel cars.

Are car companies changing their prices because of these rules?

Yes, many car companies are raising the prices of their gasoline and diesel cars. This is a strategy to make electric vehicles seem more appealing and affordable in comparison, helping them sell more EVs to meet the CO2 goals and avoid fines.

What are some of the problems car companies face with the new EU regulations?

Some carmakers feel the targets are too difficult to reach and are asking the EU to ease up on the rules. They worry about facing huge financial penalties. Also, the market for electric cars in Europe has slowed down recently, making it harder to sell enough EVs.

What is 'CO2 pooling' and how does it help car companies?

CO2 pooling is when different car manufacturers team up. Companies that are doing well with low emissions can sell their extra emission credits to companies that are struggling to meet the targets. This helps both sides avoid penalties, but it could also mean companies rely less on selling their own electric cars.

Besides selling more EVs, what else can car companies do?

Companies can closely watch their CO2 emissions month by month. This helps them understand which types of cars are selling well and how they affect their overall emissions. By tracking this, they can make smart decisions about their sales strategies to ensure they stay within the required limits.