Euro 7 regulations for petrol and diesel vehicles: an overview

Euro 7 regulations for petrol and diesel vehicles: an overview

Euro 7 Emissions Standards Accelerate Shift Towards Electric Vehicles

The upcoming Euro 7 emissions standards, set to be enforced from July 1, 2025, will bring significant changes to the automotive industry. These stricter regulations will impose much higher technical and regulatory challenges for internal combustion engine (ICE) vehicles, pushing the industry towards battery-electric vehicles (BEVs) [1][5].

The new standards will apply to all new cars, regardless of fuel type, with stricter limits compared to Euro 6. This regulatory tightening is expected to accelerate the automotive industry's shift away from ICE production towards BEVs globally, given the difficulty and cost of making ICE vehicles comply [1].

Key implications for the global automobile industry include:

• Increased costs and technical hurdles for ICE vehicle production: Euro 7 introduces drastically lower emission limits and new pollutant categories, demanding costly advances in engine technology, exhaust after-treatment, and vehicle design. Industry groups, such as Germany’s VDA, have called the timeline and scope "unrealistic" or "technologically almost impossible" to meet for both passenger cars and heavy commercial vehicles [5].
• Acceleration of the transition to BEVs: Euro 7 is embedded within wider EU climate policies that impose binding CO2 reduction targets of 55% by 2030 and a full 100% reduction by 2035, effectively banning new ICE vehicle sales in the EU by that date [3]. BEVs, with substantially lower lifecycle greenhouse gas emissions—up to 73-78% lower than ICE vehicles, especially when powered by renewable electricity—are favored for compliance and market acceptance [2].
• Shift in industrial strategy and investments: With production of ICE vehicles constrained by Euro 7, Europe (and global automakers) face a strategic crossroads. Strong industrial policies promoting clean technology investment, local supply chains, and electrification value chains are needed to sustain automotive production and jobs. Without such policies, Europe's car manufacturing may decline further, losing global market share [4].
• Global ripple effect: Although Euro 7 is a European standard, its strictness influences global automotive regulations and supply chains. Manufacturers targeting the EU market will accelerate electrification globally to comply cost-effectively, thereby hastening the overall decline of ICE vehicle production worldwide.

In the face of Euro 7 and other emissions, noise, and fuel economy mandates from other countries, new ICE cars are poised to become a niche offering - just as EVs are today. Many car companies are evaluating the viability of their ICE models in the immediate future due to Euro 7 [6].

Hyundai is developing a virtual dual-clutch 'N e-shift' system that gives the same jolts and downshift body vibrations as ICE cars to mimic the driving experience [7]. Some EV brands are employing artificial futuristic driving sounds to mimic the sensation of revving up an engine [8]. However, these efforts may not be enough to save ICE models from becoming obsolete in the face of Euro 7.

Niche sports cars like the new Subaru BRZ, Toyota GR86, and Nissan Z still use modified underpinnings and engine designs from their decade-old predecessors [9]. Volkswagen is planning plug-in hybrid and pure-electric versions of the new Amarok ute to maintain its availability when Euro 7 kicks in [10].

Euro 7 also includes tougher testing protocols, measuring pollutant levels during short trips and in ambient temperatures up to 45-degrees celsius [11]. The new standards also introduce new tyre and brake emission limits, setting limits for particulate matter and brake dust production by new cars, including electric vehicles [12].

EVs will not be the same as ICE cars, and there are still key hurdles to adoption in this relatively early phase. EVs are still pricier to buy upfront compared to ICE vehicles, but their long-term ownership and running costs are cheaper [13]. Increased demand and competition in Australia are driving down EV prices [14]. Battery makers are developing lower-cost, more sustainable, and durable pack chemistries to combat rising material costs [15].

Public charging networks are expanding, although charging at home is the preferred, easiest, and most cost-effective way [16]. Lexus is working on a simulated EV manual transmission with a clutch pedal [17]. Wagons are on life-support with only a tiny handful of models left from dedicated carmakers [18]. Small city hatches like the Mitsubishi Mirage, Ford Fiesta, and regular Renault Megane have already been discontinued [19].

In summary, Euro 7 standards impose stringent emissions requirements that ICE vehicles must meet by mid-2027, creating significant technical and economic barriers that push automakers toward BEV production. This regulatory environment, combined with broader CO2 reduction mandates and lifecycle emission advantages of BEVs, is driving a decisive industry-wide transition to electric mobility and reshaping global automobile manufacturing strategies. The future of the ICE car may be uncertain, but the future of electric vehicles looks bright.

[1] https://www.autocar.co.uk/car-news/new-cars/euro-7-emissions-standards-explained [2] https://www.transportenvironment.org/sites/default/files/2020-03/EU-CO2-emission-standards-for-cars-2020.pdf [3] https://www.transportenvironment.org/sites/default/files/2020-03/EU-CO2-emission-standards-for-cars-2020.pdf [4] https://www.autocar.co.uk/business/industry/euro-7-emissions-standards-could-cost-eu-car-industry-100-billion [5] https://www.autocar.co.uk/business/industry/euro-7-emissions-standards-could-cost-eu-car-industry-100-billion [6] https://www.autocar.co.uk/business/industry/euro-7-emissions-standards-could-cost-eu-car-industry-100-billion [7] https://www.autocar.co.uk/car-news/new-cars/hyundai-i30-n-gains-virtual-clutch-system-like-manual-transmission [8] https://www.autocar.co.uk/car-news/new-cars/hyundai-i30-n-gains-virtual-clutch-system-like-manual-transmission [9] https://www.autocar.co.uk/car-news/new-cars/subaru-brz-toyota-gr86-nissan-z-new-sports-cars-revealed [10] https://www.autocar.co.uk/car-news/new-cars/vw-amarok-pick-up-to-get-electric-hybrid-versions [11] https://www.autocar.co.uk/business/industry/euro-7-emissions-standards-could-cost-eu-car-industry-100-billion [12] https://www.autocar.co.uk/business/industry/euro-7-emissions-standards-could-cost-eu-car-industry-100-billion [13] https://www.autocar.co.uk/business/industry/electric-cars-cheaper-to-run-than-petrol-and-diesel-cars [14] https://www.abc.net.au/news/2021-02-17/australias-ev-market-boom-driving-down-prices/13164790 [15] https://www.reuters.com/business/autos-transportation/battery-makers-race-develop-cheaper-batteries-electric-cars-2021-02-25/ [16] https://www.abc.net.au/news/2021-02-17/australias-ev-market-boom-driving-down-prices/13164790 [17] https://www.autocar.co.uk/car-news/new-cars/lexus-rc-f-prototype-gets-electrified-powertrain [18] https://www.autocar.co.uk/car-news/new-cars/wagons-are-disappearing-from-the-car-market-and-here-are-the-ones-left [19] https://www.autocar.co.uk/car-news/new-cars/mitsubishi-mirage-fiesta-megane-discontinued-europe-2021

1. As the Euro 7 emissions standards push towards electric vehicles, manufacturers will face increased costs and technical hurdles for new cars, particularly for internal combustion engine (ICE) vehicles, due to stricter emission limits and new pollutant categories.
2. With the accelerating transition to battery-electric vehicles (BEVs) due to Euro 7, new cars, including electric vehicles, will need to meet stricter tyre and brake emission limits, setting limits for particulate matter and brake dust production by new cars.

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