Euro 7 will lead to big increase in vehicle prices – study

The Euro 7 proposal on pollutant emissions would lead to direct cost increases that are up to 10 times higher than those cited by the European Commission, according to a new study.

The proposed Euro 7 regulation will increase the manufacturing costs of cars, vans, trucks, and buses.

A study by Frontier Economics calculates the per vehicle costs at around €2,000 for cars and vans with an internal combustion engine, and close to €12,000 for diesel trucks and buses.

These figures are four to 10 times higher than the Commission’s estimates in its Euro 7 impact assessment (€180-450 for cars and vans, and €2,800 for trucks and buses).

These estimates comprise direct manufacturing costs only, and won’t necessarily correspond with the purchase price of a vehicle.

“The European auto industry is committed to further reducing emissions for the benefit of the climate, environment, and health. However, the Euro 7 proposal is simply not the right way to do this, as it would have an extremely low environmental impact at an extremely high cost,” stated Sigrid de Vries, director general of the European Automobile Manufacturers’ Association (ACEA).

“Greater environmental and health benefits will be achieved by the transition to electrification, while at the same time replacing older vehicles on EU roads with highly efficient Euro 6/VI models.”

In addition to direct costs, the study also highlighted that the Euro 7 proposal will trigger indirect costs, such as higher fuel consumption. Over a vehicle’s lifetime, this could increase fuel costs by 3.5 per cent, according to Frontier Economics.