Cars like that are nearly extinct in Europe, with only the Dacia Sandero holding the fort as an affordable option under €15,000. But at IAA Munich 2025, a spark of hope emerged: EU President Ursula von der Leyen announced a bold plan to revive small, affordable cars, and I’m crossing my fingers for a return of those budget-friendly rides we all love. Here’s why this matters and what it could mean for drivers like us.
The Crisis of the Disappearing Minicar
Europe’s roads are getting older—12 years on average, says Stellantis Europe boss Jean-Philippe Imparato, and that’s bad news for emissions. Older cars from 2010 spew out 76 g/km more CO2 than today’s models, making it harder to hit the EU’s strict 2025 CO2 targets, which demand a 93.6 g/km average for new cars. But here’s the rub: new cars are pricier than ever, thanks to mandatory safety tech like ADAS and upcoming Euro 7 rules tackling brake dust. In 2019, over 40 cars were priced below €15,000; now, it’s just the Dacia Sandero. With wages squeezed, many Europeans can’t afford new rides, leaving them stuck with older, dirtier cars.
The EU’s Small Affordable Cars Initiative
Enter von der Leyen’s game-changer, announced in her September 2025 State of the Union address: a “Small Affordable Cars initiative” to bring back cheap, efficient vehicles. She envisions an “E-car” that’s environmental (clean and lightweight), economical (budget-friendly), and European (built locally to protect jobs). The plan, backed by the European Automobile Manufacturers’ Association (ACEA), aims to counter the flood of low-cost Chinese EVs while keeping Europe’s 13 million auto jobs safe. Carmakers like Stellantis and Renault are pushing for relaxed rules, like exempting city cars from some ADAS features (think lane-keeping) and adding a 110 km/h speed limiter to cut costs. Smaller brakes and lighter designs could follow, creating a “virtuous weight circle” that keeps prices low and efficiency high.
Why Petrol Still Matters
You might be wondering: why petrol when the EU’s pushing for zero-emission cars by 2035? It’s simple—EVs aren’t there yet. Charging infrastructure is spotty, and many can’t afford electric models, even with seven new EVs under €25,000 hitting the market in 2025. Imparato argues that replacing old, high-emission cars with affordable petrol minicars could cut CO2 faster than forcing pricey EVs on a reluctant market. Plus, lifetime emissions matter more than production, so scrapping ancient clunkers for new, cleaner petrol cars makes sense. Still, von der Leyen insists, “No matter what, the future is electric,” hinting that these minicars might be a bridge, not a destination.
Challenges and Pushback
The catch? New EU rules take years to finalize, and car development adds more time—don’t expect these minicars in showrooms before 2028. Environmental groups like Transport & Environment (T&E) aren’t thrilled, arguing that loosening 2025 CO2 targets (now averaged over 2025-2027) slows the EV transition and lets carmakers slack off. Polestar’s Michael Lohscheller warns that weakening the 2035 combustion ban could hurt Europe’s global edge, especially against Chinese rivals like BYD. Yet, countries like Italy and the Czech Republic cheer the flexibility, seeing it as a lifeline for their auto industries.
My Take: A Win for Everyday Drivers
As someone who loved the scrappy charm of my old Panda, I’m rooting for this plan. A cheap, simple petrol minicar—like a modern Fiat 500 or VW Up—could be a godsend for young drivers, city dwellers, or anyone feeling the pinch. The Dacia Sandero’s success proves there’s demand, but one car can’t carry the market alone. If the EU and carmakers like Stellantis pull this off, we could see a new wave of fun, affordable rides that keep Europe’s roads cleaner and its factories humming. But with regulatory hurdles and green pushback, it’s a long road ahead. For now, I’ll keep dreaming of a €12,000 minicar that brings back the joy of driving without breaking the bank.
Source-Topgear.com
