The reason for this is the new Euro-7 environmental standards. They are to come into force in 2025, but automakers are already preparing for them, and models that meet the new requirements will appear somewhat earlier.
Renault Group CEO Luca de Meo explained in an interview with the British publication Autocar that all Euro-7 standard cars must be equipped with expensive new-generation catalytic converters and particulate filters containing precious metals.
But if for a conventional Mercedes-Benz S-Class worth 120 thousand euros the price increase will be insignificant in percentage terms, then for inexpensive cars like the Renault Clio for 15 thousand euros it will become very noticeable.
Luca de Meo predicts that in this situation compact cars will gradually switch to electric power, because batteries for electric cars, on the contrary, are becoming cheaper by about 10% every year. That is, in the near future, compact electric vehicles will equal the price of their gasoline counterparts.
The head of Renault believes that until 2030 Europeans will not be able to completely abandon cars with internal combustion engines. However, all gasoline and diesel models will eventually receive hybrid systems – otherwise they will not be able to fit into strict eco-standards.
