The European Commission is preparing to introduce a new category of compact cars, up to 4.2 metres in length, designed to make vehicles more affordable for consumers and to help European manufacturers compete with China’s rapidly expanding auto industry. The announcement is expected by 10 December, according to European Commissioner for Prosperity and Industrial Strategy Stéphane Séjourné.
The new class will mirror Japan’s “Kei” car segment, lightweight and compact vehicles that dominate the Japanese market due to their affordability and efficiency. Brussels plans to create an intermediate category between small four-wheelers weighing just a few hundred kilograms and today’s “mini” cars. These small electric vehicles will be stripped of high-end equipment and some advanced safety systems in order to keep production costs low and retail prices accessible.
If approved, the reform will pave the way for a new generation of affordable European-made electric cars priced between €16,000 and €20,000. The initiative comes after strong lobbying by major European carmakers, who argue that the EU’s strict regulations and rising costs have made it difficult to compete with cheaper Chinese electric models.
Executives from groups including Stellantis have repeatedly urged the Commission to modernise EU car classifications. As early as June, Stellantis’ CEO called for action, saying such a category could revive small car production in Europe and restore competitiveness under a framework similar to Japan’s successful model.
The plan marks what could be a turning point for Europe’s electric mobility strategy, a direct response to Chinese dominance and a bid to make clean transport affordable for all.
Source: AMNA