Euro 7: Direct costs 4 to 10 times higher than European Commission estimates, new study reveals

Jul 29, 2023

Brussels, 23 May 2023 – The Euro 7 proposal on pollutant emissions would lead to direct cost increases that are 4 to 10 times higher than those cited by the European Commission, according to a new study.

The proposed Euro 7 regulation will increase the manufacturing costs of cars, vans, trucks, and buses. A study by Frontier Economics calculates the per vehicle costs at around €2,000 for cars and vans with an internal combustion engine, and close to €12,000 for diesel trucks and buses. These figures are 4 to 10 times higher than the Commission's estimates in its Euro 7 impact assessment (€180-450 for cars and vans, and €2,800 for trucks and buses).

These estimates comprise direct manufacturing costs only, primarily for equipment and investments. It is important to note that these additional costs do not correspond with purchase prices; instead they drive up prices for end-users even further. Price increases would likely therefore be higher than the figures cited in the study.

With current Euro 6/VI rules, the EU has the most comprehensive and stringent standards for pollutant emissions (such as NOx and particulate matter) in the world. Exhaust emissions are already at a barely measurable level thanks to state-of-the-art vehicle technology.

"The European auto industry is committed to further reducing emissions for the benefit of the climate, environment, and health. However, the Euro 7 proposal is simply not the right way to do this, as it would have an extremely low environmental impact at an extremely high cost," stated Sigrid de Vries, Director General of the European Automobile Manufacturers’ Association (ACEA).

"Greater environmental and health benefits will be achieved by the transition to electrification, while at the same time replacing older vehicles on EU roads with highly efficient Euro 6/VI models."

In addition to direct costs, the Euro 7 proposal will trigger indirect costs, such as higher fuel consumption. Over a vehicle's lifetime, this could increase fuel costs by 3.5% – amounting to an extra €20,000 for long-haul trucks and €650 for cars and vans.

These indirect costs – which are ignored in the Commission's impact assessment – come on top of the direct costs. They would add to the total cost of owning a vehicle, placing additional financial pressures on consumers and businesses at a time of high inflation and rising energy prices.

Receive them directly in your inbox!