The European Commission's "Industrial Action Plan for the European Automotive Sector" proposes extending the period of compliance with EU CO2 emission targets from one to three years. This change will give European automakers more time to meet their targets, potentially avoiding significant penalties for non-compliance.
Meanwhile, UK Business Minister Jonathan Reynolds said a "significant policy change" would be implemented regarding the electric vehicle sales mandate. He made the comments during a trip to Tokyo to meet with officials from Nissan, which has a production facility with a capacity of 600,000 vehicles per year in Sunderland.
Automakers have criticized the British mandate for electric vehicles, which mandates that 28% of new car sales should be zero-emission vehicles from 2025 (up from 22% in 2022-2024) and 80% from 2030. A ban on the sale of all new cars that are not electric vehicles will be introduced in 2035. However, Nissan has questioned the effectiveness of the £15,000 fines imposed for non-compliance and wants more flexibility to ensure the viability of car production in the UK.
Steel producers are exposed to the weakness of the automotive industry
The automotive sector is the second largest consumer of steel in Europe, accounting for about 17% of the material purchased in the region.
In recent months, factories have reported that negotiations on steel supply contracts with customers in the automotive supply chain have been significantly extended. Some agreements, usually concluded in October or November, were reached only in February. As major OEMs, including Volkswagen Group and Stellantis, sought to reduce costs, they initially sought savings of 100-120 euros per ton for rolls of automotive steel.
Car sales remain well below pre-Covid levels. Increased inflation and interest rates, combined with the increased cost of electric vehicles compared to their gasoline and diesel alternatives, have significantly reduced the availability of a new car.
Jato Dynamics reported that the average retail price of a car in Germany is now 56,735 euros. That's more than the average German worker's pre-tax income of 51,900 euros, according to the country's Federal Statistical Office.
Car registrations in the EU increased by 0.8%, to about 10.6 million units in 2024. However, sales of electric vehicles decreased by 5.9%, their market share decreased to 13.6%. New car registrations in the UK
