Fearing China's small car rivals, Stellantis, Renault lobby EU for fewer rules

With
Chinese automakers
pushing into Europe,
Stellantis
and
Renault
are lobbying for a new, less-regulated category of
small cars
with fewer safety features, making them cheaper to build.
Over the last two months, Stellantis Chairman John Elkann and Renault CEO Luca de Meo have engaged in a rare public campaign to get the European Union to consider the matter.
The aim is to revive a small car segment largely abandoned by Europe's automakers as such models were unprofitable, a problem they blame on regulations that make the vehicles larger, heavier and more expensive.
Elkann last week said Europe needs its own version of Japan's "kei cars", small, urban vehicles with size and engine restrictions that enjoy lower tax and insurance costs - which he said could be called the "e-car".
"There's no reason why if Japan has a kei car, which is 40% of the market, Europe should not have an e-car," he said at an event in Turin, echoing similar comments in a joint editorial with Renault's de Meo published last month.
Live Events
Though de Meo is set to leave Renault in July, the company is expected to maintain its support for the proposal.
"Small cars are a pocket of growth one cannot, and must not, ignore right now," said Francois Provost, Renault's director of procurement, partnerships, and public affairs.
Chinese rivals have so far focused on larger EVs and hybrids in their bid for market share in Europe, but smaller EVs are on the way.
The Dolphin Surf from China's BYD hit the market one month ago, priced from under 20,000 euros ($23,124) with features such as a rotating large touch screen and anti-steam rear mirrors.
By comparison, the Renault 5, which is similar though can carry one more passenger, costs almost 5,000 euros more when similarly equipped.
Facing that pressure, European manufacturers are examining the potential for cheaper cars to help them boost sales and achieve their CO2 targets, said Flavien Neuvy, auto analyst and head of research firm Cetelem.
"The market is down 20% compared with 2019, so there is not enough volume for everyone, and the Chinese are coming," he said.
Though small cars currently account for just 5% of the market, they made up as much as half the market in the 1980s, and the segment could rebound with more launches, said S&P Global, which estimates sales could reach 600,000 by 2030, up about 20% from last year.
'A LOT OF EXCUSES'
The lobbying effort targets the EU's General Safety Regulations 2 (GSR2), which mandates safety features such as side airbags, sensors detecting whether a driver is falling asleep, lane-crossing warning, and more thorough crash tests.
Such requirements and European rules on pollution add between 850 and 1,400 euros ($983-$1,607) to the cost of a car, estimates a source familiar with the lobbying.
Lobbyists argue there is no need for safety requirements like those for high-speed collisions when it comes to small cars designed for city drivers.
Backed by industry group the European Automobile Manufacturers Association (ACEA), they want an entirely new vehicle category called M0, or e-car.
The European Commission is looking into the matter, said spokesperson Lea Zuber.
Revamping requirements for smaller cars without compromising on safety will be complex and will not necessarily be implemented, said people familiar with the discussions.
And whether less-regulated models could compete against Chinese EVs also remains to be seen.
Matthew Avery, director of strategic development at Euro NCAP, which tests new cars for safety, said the idea that small city cars would not be involved in highway accidents is nonsense.
The Chinese are bringing cars to Europe that consistently get five-star ratings from Euro NCAP, said Avery. Although its ratings do not carry legal weight, consumers take them into account and many corporate fleets will not buy cars with less than five stars.
A change in regulations to cut some safety requirements could leave smaller European cars with two- or three-star ratings, Avery said.
"If they want to, they can de-spec a car for safety," Avery said, but noted Euro NCAP's tests and safety ratings will remain unchanged. "Our job is just to say, well, this car is safer than that car."
Emmanuel Bret, deputy head of BYD France, says the company will continue offering small cars that meet all current EU regulations and that blaming the bloc for making them unaffordable is just "a lot of excuses".
"Let customers choose," Bret said.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

India Today

an hour ago

• India Today

China holds first trilateral meeting with Pakistan and Bangladesh

China, Bangladesh and Pakistan held their first trilateral meeting at the official level in China's Kunming. The meeting took place on Thursday and was attended by key representatives from all three Vice Foreign Minister Sun Weidong, Bangladeshi Acting Foreign Secretary Ruhul Alam Siddique and Additional Foreign Secretary of Pakistan Imran Ahmed Siddiqui participated in the meeting in person. Pakistani Foreign Secretary Amna Baloch joined the first phase of the discussions via video her remarks, Foreign Secretary Amna Baloch appreciated China for organising the inaugural meeting of the trilateral mechanism. She said, 'The Chinese side has done well in convening the inaugural meeting of the trilateral mechanism.' Noting the shared goals of the three nations, she said, 'There are common aspirations of the three sides for people-centric development.' She added that Pakistan seeks 'deeper engagement between China and South Asian countries'.Baloch also noted the positive momentum in Pakistan-China bilateral relations and said Islamabad was ready to boost cooperation with Islamabad and Dhaka in multiple further said Pakistan was ready to work with China and Bangladesh to enhance ties in trade and investment, agriculture and digital Watch IN THIS STORY#Pakistan#Bangladesh

Business Standard

an hour ago

• Business Standard

China, Pakistan, Bangladesh hold inaugural trilateral ministerial meet

China, Pakistan, Bangladesh have held the inaugural session of their trilateral meeting of foreign ministry officials, Beijing's new strategic initiative to promote closer ties between two estranged South Asian countries in India's immediate neighbourhood. It is the second such trilateral that China has established in India's neighbourhood after its foreign ministers' mechanism with Pakistan and Afghanistan last month. On Thursday, Chinese Vice Foreign Minister Sun Weidong, Bangladeshi Acting Foreign Secretary Ruhul Alam Siddique and Additional Foreign Secretary of Pakistan Imran Ahmed Siddiqui attended the meeting held at the Chinese city of Kunming, capital of Southern Yunnan province. Pakistani Foreign Secretary Amna Baloch participated in the first phase of the meeting via video link, a Chinese Foreign Ministry press release said here on Friday. In his address, Sun Weidong said Bangladesh and Pakistan are both good neighbours, good friends, and good partners of China, and important partners in high quality Belt and Road cooperation, the Foreign Ministry's press release said. Cooperation among China, Pakistan and Bangladesh aligns with the common interests of the three peoples, and can contribute to regional peace, stability, development and prosperity, Sun who was a former Ambassador to Pakistan and India, said. The three sides exchanged views extensively on China-Pakistan-Bangladesh trilateral cooperation and agreed to establish a working group to follow up and implement the understandings reached during the meeting, the press release said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Time of India

an hour ago

• Time of India

Who Is Mark Walter? Billionaire changing sports by owning teams from NBA to Formula 1

Who Is Mark Walter? Billionaire changing sports by owning teams from NBA to Formula 1 (Image via Getty) Mark Walter, who is a billionaire investor and the CEO of Guggenheim Partners, is no stranger to headlines, especially not for buying major sports ownership. He has teams in several leagues and different countries, and every year he has quietly built a sports empire that includes teams in baseball, women's hockey, European football, and motorsports. Now, he is (somewhat inappropriately) making headlines again. A new deal with the Los Angeles Lakers has valued the team at an unprecedented $10 billion. Which is extremely shocking for fans and insiders, but just reaffirming that Mark Walter is changing the entire landscape of sports globally again. Mark Walter now owns part of the Los Angeles Lakers After $10 billion deal On Monday, June 17, 2025, Mark Walter and his firm, Guggenheim Partners, agreed to acquire a major stake in the Los Angeles Lakers at a record $10 billion valuation, according to Front Office Sports. This deal is now the highest team valuation ever recorded in the NBA . Mark Walter is already the primary owner of the Los Angeles Dodgers, which he and Guggenheim Baseball Management bought in 2012 for $2.15 billion. Mark Walter is also part-owner of the Los Angeles Sparks, the WNBA team, continuing his strong focus on top LA franchises. With this new Los Angeles Lakers deal, Mark Walter now holds a major share across basketball, baseball, and women's sports — all within the city of Los Angeles. Mark Walter's sports holdings include Chelsea FC and a 2026 F1 team Mark Walter's investments go beyond the U.S. In 2022, he co-led the group BlueCo along with Todd Boehly to buy Chelsea FC, a top soccer club in London. They also own RC Strasbourg, a football club in France. In 2023, Mark Walter expanded into women's hockey by purchasing the Premier Hockey Federation and merging it with other leagues, creating the Professional Women's Hockey League (PWHL). The league's championship trophy is named the Walter Cup in his honor. In motorsports, Mark Walter's group TWG Motorsports will launch a Cadillac Formula 1 team in 2026. He's also involved in IndyCar, Formula E, NASCAR, and other racing series through deals with Andretti Global, Spire Motorsports, and Wayne Taylor Racing. As one sports executive told Front Office Sports, 'No one is doing what Mark Walter is doing — he's building something nobody else even imagined.' Also Read: Who is Mark Walter? The billionaire who acquired Los Angeles Lakers in biggest sports team deal in history Game On Season 1 kicks off with Sakshi Malik's inspiring story. Watch Episode 1 here