EU Plans New Compact EV Class to Undercut Chinese Rivals – Report
-full_normal.jpg)

The European is reportedly planning to create a new compact electric vehicle class in a bid to undercut rivals from China.
The European Union (EU) is reportedly planning to create a new compact electric vehicle (EV) classification that features more relaxed technical requirements in a bid to match the growing Chinese automakers on pricing.
As reported by Automotive World, the European Commission (EC) has confirmed that it will soon release draft proposals for this new ‘E car’ category, which will define vehicles by size, weight, and motor displacement to achieve cost reductions of 10-20%. With this reduction, sticker prices for some European-badged EVs could go down somewhere around €15,000-€20,000 (RM71,785 to RM95,714).


The new classification will focus on removing some mandated requirements designed for long-distance travel, such as drowsiness detection systems, lane positioning assistance, and sudden stop signalling for urban-focused compact EVs. The report suggests that this equipment may not be necessary for these compact urban EVs, and they have also been identified as the things that inflate production costs for these EVs.


Volkswagen ID.Polo (left) & ID.Every1 concept (right)
Should this vehicle class be approved by the EC, European brands like Volkswagen, Renault, and Stellantis stand to benefit the most from it. Compact European EVs like the upcoming Volkswagen ID.Polo and the smaller ID.1 could be priced lower than their respective estimated pricings of sub-€25,000 (RM119,642) and €20,000 (RM95,714), respectively.

-full_normal.jpg)
As mentioned above, the growth of affordable cars from China in Europe is said to be one of the main reasons for this new classification proposal, as Chinese automakers now have captured 7% of Europe’s overall car market during July-September 2025. While EV market share has increased to 12% so far this year, they are being dominated by China’s BYD, and that is despite the current 45.3% import duties imposed by the EU on Chinese-made EVs.
From another perspective, this new compact vehicle classification could also potentially revive the EU’s interests towards Japanese kei cars, which were previously classified as non-tariff barriers by the union. This growing trend of leaning towards more compact cars is also being shown by the US, with its president Donald Trump previously approving domestic “tiny car” production, opening export opportunities for specialised Japanese and even Malaysian models too.
Source: Automotive World
Gallery
Written By
Mukhlis Azman
An avid two-wheeler that writes and talks about four-wheelers for a living, while dreaming of an urban transit-laden Malaysia. @mukhlisazman
JPJ Running Numbers
KUALA LUMPUR
VRT8025
SELANGOR
BSU3956
JOHOR
JF6536J
PULAU PINANG
PSG4096
PERAK
APM2245
PAHANG
CFJ1046
KEDAH
KGJ4573
NEGERI SEMBILAN
NEM2719
KOTA KINABALU
SJU5389
KUCHING
QAB7493P
Last updated 14 Oct, 2026
Fuel Price
Petrol
RON 95
RM 3.97
+1.38
RON 97
RM 4.90
+1.75
RON 100
RM 7.20
+2.20
VPR
RM 8.23
+2.00
Diesel
EURO 5 B10
RM 5.12
+2.08
EURO 5 B7
RM 5.32
+2.08
Last updated 30 Apr, 2026
Related News
EU Reverses 2035 ICE Ban, Aims For 90% Carbon Reduction Instead
EU revises ambitions 2035 ICE ban, announces ‘realistic’ new target to lower carbon emissions by 90% instead.
17-12-2025
EU Plans to Ban Carbon Fibre in Cars by 2029 – Report
The European Union is planning to ban carbon fibre from cars by 2029, classifying it as a hazardous material.
15-04-2025
EU Not Close To Deal With China On EV Tariffs - Report
EU and Chinese officials are exploring alternatives to proposed European tariffs on Chinese EVs.
27-11-2024
Strong Growth In Electric Car Sales In Europe By 2025 - Study
BEVs sold in the European Union are expected to rebound, says group Transport & Environment (T&E).
19-09-2024
EU Plans Sept 25 Vote On Raising Tariffs On EVs From China - Report
The EU plans to hold a vote on September 25 to impose definitive tariffs on EVs from China.
18-09-2024
EU Will Lower Proposed Tariffs On Tesla, Other EVs from China - Report
European Union is anticipated to slightly reduce the additional tariff rates proposed for Chinese Evs as well as Tesla, an exclusive report says.
11-09-2024
EU Cuts Import Tariffs On Selected China-Made EVs
Tesla, BMW, VW and select Chinese marques benefit from revised import tariffs levied by the EU.
21-08-2024
New EU Tyre Ruling Promises Tyres That Are Safer & Last Longer
A new law introduced by the EU mandates that tyres must offer the same wet weather performance even when worn.
24-07-2024
Latest News
EV Charging Incentives: Malaysia vs Other Countries
Malaysia offers EV charging tax incentives, but how does it compare globally? Explore EV charger subsidies, grants and tax breaks in six other markets.
08-10-2026
Proton Sold 40,000 e.MAS Cars. But That's Not Even The Most Interesting Number
Proton e.MAS has delivered 40,000 vehicles, but the e.MAS 5's place among Malaysia's best-selling cars tells an even bigger EV story.
30-09-2026
Kuching Gets Zeekr's First East Malaysia Store, With More Coming Next Year
Zeekr opens its first East Malaysia retail location at The Spring Kuching, with permanent sales and service centres targeted for Q1 2027.
29-09-2026
Buying A Hybrid Or EV? MAA Proposes Up To RM10,000 Tax Rebate
MAA proposes a RM7,000-RM10,000 income tax rebate for hybrid and EV buyers under Budget 2027, plus incentives for home charging and old-car scrapping.
28-09-2026
Driving Up North In An EV? There's A New 240 kW Charger At Rawang R&R
TNB Electron's new 240 kW DC EV charger at R&R Rawang Northbound is now live, with free charging available until 29 Sept 2026.
28-09-2026
Could An EV Really Work As A Malaysian Police Car? PDRM Is Finding Out
PDRM is testing the Proton e.MAS 5, e.MAS 7 EV and e.MAS 7 PHEV to see whether electrified vehicles could work for Malaysian police duties.
18-09-2026
Malaysia's Electricity Protection Is Now 800 kWh - How Much Power Does An EV Use Per 100 KM?
Malaysia's electricity protection threshold is now 800 kWh. Here's how much electricity popular EVs use per 100 km and what the extra 200 kWh means.
18-09-2026
17 New Mercedes Models Are Coming To Malaysia In 2027 - Here's What We Know
Mercedes-Benz Malaysia plans 17 new models for 2027, with most set for local assembly in Pekan. Here's what we know about its ICE and EV plans.
17-09-2026
Show More
trending_flat
Malaysia First Used Car and EV Consignment Platform
This is the best place to sell your car at true market value. Instead of accepting low dealer trade-ins, we handle everything and connect your car directly to genuine buyers for the highest price.

Understanding CariCarzAutomall Consignment Plan


Approved 200-Check Points Inspection

7 Day Money Back Guarantee

One Year Extended Warranty

No Hidden Charge