Brussels is to propose special privileges for a “Made in Europe” small car class, which will benefit from preferential parking, lighter rules and more generous subsidy arrangements to keep out Chinese competition. 

The new all-electric category will be presented as part of a package of measures aimed at easing pressure on Europe’s car industry, which is under heavy pressure from the influx of affordable Chinese EVs, US tariffs and sluggish demand.

It will grant eligible cars — which are built in Europe and under a certain weight — access to reserved parking spaces and charging infrastructure as well as a 10-year exemption to incoming regulations such as safety rules and the EU’s Euro 7 emissions standards that are due to come into force in 2026. By doing so the commission hopes to keep the price lower since frequent changes in standards contribute to rising costs for carmakers.