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Petrol Power Could be Preserved with Europe’s Take on the Kei Car

by Nik Berg
16 September 2025 2 min read
Petrol Power Could be Preserved with Europe’s Take on the Kei Car
Honda

Author: Nik Berg

Reports of the end of the internal combustion engine may well be premature, as the European Union heads for a U-turn on its new car ICE ban for 2035.

In her recent State of the Union Address EU President Ursula van der Leyen stated: “Millions of Europeans want to buy affordable European cars, so we should also invest in small, affordable vehicles, both for the European market but also to meet the surge in global demand. This is why we will propose to work with industry on a new small affordable cars initiative.”

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This could lead to a return of inexpensive, compact and efficient combustion-powered cars, to re-mobilise the masses who have been priced out by increasing complexity and electrification. Short of Dacia you won’t find a brand selling new cars for less than £15,000 today, but hopefully that will change under the proposals.

Stellantis European boss Jean-Philippe Imparato claims that the average age of cars on the road in Europe is now 12 years and increasing. With a typical car from 2010 emitting some 76 g/km of CO2 more than a modern car, he says that replacing this aging fleet with affordable new cars would dramatically cut the levels of greenhouse gases, even factoring in manufacturing emissions.

European car makers are facing huge competition from China, especially with EVs, but Imparato believes that European car buyers aren’t ready for a wholesale transition to electric, and neither is the infrastructure. “There’s a sense of urgency and we need action not talk. The 2030 proposal (to halve CO2 emissions from today) is no longer reachable. The market for EVs is not there, because the charging stations aren’t there and the economic situation is not there.”

Car manufacturers are now set to meet with the EU to pitch for cheaper, mostly petrol-powered cars to be permitted. To keep costs down these vehicles would likely have to be excluded from rules that require expensive driver aids, and perhaps new Euro 7 emissions regulations which will include brake dust. Euro car bosses have proposed a new category of car, like Japan’s kei class which would be small, lightweight and more environmentally friendly as a result. Designed primarily for cities and shorter trips the cars could well feature speed limiters to compensate for the reduced levels of costly safety technology.

The concept appears to have support at the highest level. “I believe Europe should have its own E-car,” added van der Leyn. “E for environmental – clean, efficient and lightweight. E for economical – affordable for people. E for European – built here in Europe with European supply chains. Because we cannot let China and others conquer this market.”

Small, lightweight and no overbearing ADAS? It sounds like the perfect fun car, doesn’t it? Fingers crossed.

What do you think? Should Europe create a new class of small, affordable petrol cars – or stay the course toward full electrification? Share your thoughts below!

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