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Europe's carmakers discount EVs, hike petrol car prices as new emissions rules loom

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European automakers are raising prices of petrol cars and readying discounts on electric vehicles as they brace for yet another challenge - tougher emissions rules that threaten to further shrink profits across the struggling industry.
European carmakers are increasingly offering discounts on electric vehicles (EVs) while simultaneously raising prices on petrol cars as new, stricter emissions regulations are set to take effect in 2025. This strategy is aimed at boosting EV sales to meet the European Union's ambitious targets for reducing fleet-wide CO2 emissions. Manufacturers like Volkswagen, Stellantis, and Renault are providing significant incentives on EVs to clear inventory and encourage adoption, amidst a backdrop of slowing demand for electric cars due to high costs and inadequate charging infrastructure. Conversely, the price hikes on internal combustion engine vehicles are partly due to the need to offset the costs associated with compliance with the new emissions standards, which could see fines for non-compliance. This dual pricing strategy reflects the automotive industry's complex transition towards electrification, balancing regulatory compliance with market dynamics.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/europes-carmakers-discount-evs-hike-petrol-car-prices-new-emissions-rules-loom-2024-12-17/ ]