Will Tiny Cars Rescue Europe’s Ambitious Electric Vehicle Plan? [Forbes]
Honda Motor Company, Ltd. (HMC)
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Source: Forbes
The European Union's plans to make the new car market an electric vehicle monopoly by 2035 look like failing but a change of direction is imminent, very small are the watchwords and a new, cheaper mass market in EVs is the target. The European Union has mandated that about 80% of new car sales in 2030 should be electric and 100% (since provisionally cut to 90%) in 2035. The Commission, the EU's executive arm, has decided that the pace of EV sales is far too slow and has proposed a new category of small and seriously affordable cars. No details are available yet, but Japan's cheap little Kei cars may well provide a blueprint. These cars may be small and inexpensive, but they still offer some of the latest safety technology. Prices are kept low because of small, 660 cc engines, and significant tax and financial advantages. The assumption is they would be electric. If current trends continue in Europe, the required emergence of a mass market in EVs looks unlikely. For instance, in
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