Europe is getting serious about defending its automotive industry, and small electric cars are now at the center of the strategy. Faced with a growing wave of low-cost Chinese EVs, alongside US tariffs and weakening demand at home, the European Commission is preparing a new set of incentives aimed squarely at compact, Europe-built electric vehicles.
The idea is simple: make small EVs easier and cheaper to build—and more attractive to own. Under the proposed plan, a newly defined category of small electric cars manufactured in Europe would benefit from lighter regulations, better access to parking and charging infrastructure, and stronger financial support. It’s part of a broader effort to relieve pressure on European automakers struggling to stay competitive.
To qualify, vehicles would need to be produced locally and stay below a specific weight limit. In return, they would gain access to dedicated parking and charging spaces, along with a 10-year exemption from some upcoming rules, including parts of new safety requirements and the Euro 7 emissions standards scheduled for 2026, according to the Financial Times.
European officials believe these changes could significantly reduce the final cost of small EVs, especially as constant regulatory updates have driven production expenses higher. Sources familiar with the proposal suggest the weight cap could be set at around 1.5 tonnes. Inside the Commission, the project has reportedly been nicknamed “Sejournette,” after French commissioner Stéphane Séjourné, who is spearheading the initiative.
Small cars remain the one segment where European brands still have a clear edge over their Chinese rivals. While Chinese manufacturers have largely focused on larger electric models and plug-in hybrids, companies like Stellantis and Renault have been calling for a dedicated small-car category that allows for stronger margins and fewer regulatory constraints.
This proposal is also tied to a wider reassessment of the EU’s plan to ban internal combustion engines from 2035. That policy is facing mounting pushback from automakers and right-wing politicians, who argue that the pace of Europe’s transition to electric mobility has become too rigid and economically risky.
Discussions now extend beyond small EVs. Policymakers are also considering allowing plug-in hybrids to remain on sale for an extra five years, adjusting emissions targets for 2035 to keep limited combustion-engine sales alive, and increasing support for biofuels and carbon-neutral e-fuels.
Still, not everyone is convinced. Some officials warn that China is already well ahead of Europe when it comes to plug-in hybrid technology, raising questions about whether these measures will be enough. For now, the European Commission has yet to reveal the final shape of the proposal, with negotiations still ongoing.
