Renault Group CEO Luca de Meo has called for “flexibility” of emissions targets in the EU from next year, as car makers fret over slower than expected EV growth.
The EU has stuck with a CO2-based system that forces car makers to drive down emissions averages, rather than replicate the UK’s zero-emissions vehicle (ZEV) mandate, which adds the need to sell a growing proportion of electric cars.
However, next year’s EU requirement for car makers to chop 15% from their 2020 average CO2 figures is forcing Renault to sell almost the equivalent percentage of EVs across the EU as it would do in the UK.
“To hit the target, we need to be way above 20%, maybe 22% [or] 23% [EV sales]; that's our estimation,” de Meo told analysts on the French company’s second-quarter earnings call on 29 July.
However, the overall EV share across the EU for the first half of the year was 12.5%, with sales especially hurt by Germany’s removal of EV purchase incentives.
“The EV market has been surprisingly dynamic in the last few years, but it doesn't match the speed that is required to hit what they are asking us to do,” de Meo said.
Renault, along with its partner Nissan (with which it combines sales for emissions calculations purposes), has gone for an EV-plus-hybrid strategy without the help of plug-in hybrids.
While hybrids lower the CO2 average, they don’t have the same impact of the two plug-in options, especially EVs.
“One EV basically accounts for four ICE cars. EV is key in this calculation,” de Meo said.
Renault is crying foul, given its outwardly benign line-up. “If any [manufacturer] that can reach the target, that is us,” de Meo said. "We sell small cars. We are in the top two for hybrid [sales]. So we are calling for a level of flexibility.”
Makers of smaller cars face tougher individual targets, as each maker's target is based on a 15% reduction from a specific value calculated from its CO2 emissions for 2020, as well as mass and registration figures from 2021.
Overall, car makers have to hit an average of 93.6 g/km of CO2 for cars – which is hard work when a Renault Clio hybrid emits from 95g/km.
Premium brands selling heavier, more expensive cars can more easily incorporate PHEV technology, which pushes official CO2 emissions way down.
The calculation changes in 2025 to bring the figure more in line with the way PHEVs are actually driven (ie using the engine for longer), but manufacturers like BMW, JLR and Mercedes-Benz are increasing the size of the battery to compensate.
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