Release date: 03.01.2023

Euro 7 standards and their impact on the automotive industry

What is new in the Euro 7 emissions standard? Updated emission limits, broader boundary conditions for RDE testing, extended emission durability periods, first-ever limits for particle emissions from brakes, and rules on microplastic emissions from tires are all part of the Euro 7 proposal. There will be higher limits on emissions for vehicles with the Euro 7 standard. For example, vehicles certified as Euro 6 must comply with emission standards for the next 5 years or 100,000 kilometers. The proposed rules require compliance with Euro 7 emission standards for 10 years or 200,000 kilometers. According to European Commission, the Euro 7 emission standards are needed to set more ambitious limits for air pollutants. But, the impact of future CO2 goals for heavy-duty vehicles needs to be addressed, as is the rapidly accelerating transition to zero-emission cars. How do vehicle manufacturers see the outcomes of Euro 7? Producers of vehicles have raised objections to the Euro 7 proposal. The European Automobile Manufacturers’ Association (ACEA) said that the “environmental benefit of the Commission’s proposal is very limited, whereas it heavily increases the cost of vehicles. Moreover, it focuses on extreme driving conditions with hardly any real-life relevance.” We have winners, but we […]

What is new in the Euro 7 emissions standard?

Updated emission limits, broader boundary conditions for RDE testing, extended emission durability periods, first-ever limits for particle emissions from brakes, and rules on microplastic emissions from tires are all part of the Euro 7 proposal.

There will be higher limits on emissions for vehicles with the Euro 7 standard. For example, vehicles certified as Euro 6 must comply with emission standards for the next 5 years or 100,000 kilometers. The proposed rules require compliance with Euro 7 emission standards for 10 years or 200,000 kilometers.

According to European Commission, the Euro 7 emission standards are needed to set more ambitious limits for air pollutants. But, the impact of future CO2 goals for heavy-duty vehicles needs to be addressed, as is the rapidly accelerating transition to zero-emission cars.

How do vehicle manufacturers see the outcomes of Euro 7?

Producers of vehicles have raised objections to the Euro 7 proposal. The European Automobile Manufacturers’ Association (ACEA) said that the “environmental benefit of the Commission’s proposal is very limited, whereas it heavily increases the cost of vehicles. Moreover, it focuses on extreme driving conditions with hardly any real-life relevance.”

We have winners, but we have losers also, and the losers seem to be heavy trucks and buses. For example, a report from Morgan Stanley found that Europe’s biggest automaker, Volkswagen Group, could face 400 million euros in compliance costs on car sales.

All diesel-powered trucks and buses must cut their NOx emissions by 78%, from 400 mg/km to 90 mg/km. The European Commission estimates that this will increase the cost of complying with the law by €2,700 per car. But vehicles like these are more expensive than regular cars. Still, the money saved on gas could have been used to fund electrification, batteries, or even hydrogen fuel cells, making transport and shipping more expensive for everyone.

As a result of this situation, we asked other industry specialists’ opinions on the subject, on a LinkedIn poll. Our question was “What kind of outcome needs more attention when it comes to Euro 7 standards and their impact on the automotive industry?” and their answers didn’t surprise us, as they only support the concerns presented above.

Increasing costs is the biggest concern of those operating in this industry, just as Oliver Zipse- President and CEO of BMW, says: “Unfortunately, the environmental benefit of the Commission’s proposal is very limited, whereas it heavily increases the cost of vehicles.”

Some are worried about time goals that they need to see as realistic. The proposed implementation dates are July 2025 for cars and vans and July 2027 for heavy-duty vehicles. The implementation of new production technologies needs to be developed, engineered, tested, and type-approved, which means an investment of time in addition to that of costs.

What about EVs? Will they also be affected by Euro 7?

Euro 7 accentuates fuel-powered cars’ emissions and forces producers to invest in new production lines instead of letting them move forward with the production of electric vehicles. This comes with a paradox compared to the past regulations to stimulate the production of electric cars.

Ford Motor Company, which has two separate businesses, Ford Blue for internal combustion engine automobiles and Ford-e for electric vehicles, has expressed concern that the proposed regulation “has the potential to compromise the significant progress Europe has achieved in converting to electric mobility.” CEO says that “We should not be diverting resources to yesterday’s technology and invest in zero-emission instead.”

For EVs (electric vehicles), the proposal includes limits on particles produced by tires and brakes. Euro 7 places an obligation on manufacturers to design, construct and assemble vehicles to comply with certain emission limits: a limit of 7 mg/km on brake particle emissions (particles emitted by the brake system of a car) until 2035, and then a limit of 3 mg/km after that.

The proposal also includes regulations on battery longevity. The Commission thinks these rules are necessary to boost consumer confidence that EVs will maintain performance after years of use and to promote a strong second-hand market for EVs.

Conclusion

All this considered, what is the purpose of the Euro 7 standards? Will they be implemented even if there are many controversies related to their adoption? Will they receive the approval of the European Parliament and the member states?

We do not know what will happen in the future or which scenario from those presented above will be implemented. But what we know for sure is that throughout the 20 years, we have developed custom solutions in telematics to be prepared for anything that comes up.

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