European lawmakers have confirmed plans for a new class of ultra-compact electric cars built in Europe. The proposed M1E category will set strict limits on vehicle size and offer manufacturers extra incentives to sell smaller, cheaper models.
The European Commission is currently discussing the class with European car makers and has released initial details about the program.
New Category Inspired by Japanese Design
The M1E class takes loose inspiration from Japan’s kei car category. It’ll sit between the current M1 passenger car class and the L7E quadricycle class that includes vehicles like the Citroen Ami.
Vehicles qualifying for M1E status must measure less than 4.2 metres long. That’s significantly larger than Japan’s kei car limit and bigger than concept models from manufacturers like Dacia.
Several current EVs already meet the size requirements – including the Renault 4 and 5 and the Cupra Raval/Volkswagen ID. Polo twins.
The commission hasn’t clarified whether additional technical restrictions will apply to the new class.
Ten-Year Planning Framework
The EC aims to set requirements for the class that’ll remain stable for 10 years. This gives manufacturers certainty for product planning and development cycles.
To encourage European manufacturing, the proposals include “super credits” that help car makers hit emissions targets through 2034.
These credits would provide 1.3 credits for every European-built M1E car sold – rather than the standard one credit per vehicle. Manufacturers can use these credits to offset carbon emissions from other vehicles as they work toward Europe’s CO2 targets.
The credit system promotes smaller EV manufacturing in Europe. It notably excludes cars like the Dacia Spring and Leapmotor T03, which are built in China.
National Incentive Programs
The commission suggests that creating a clearly defined segment could help individual countries develop targeted incentive schemes. These might include subsidies, tax breaks, size-based parking fees, or access to priority traffic lanes.
After focusing on larger SUVs for their early EVs, many manufacturers are shifting toward smaller, cheaper models.
Renault will launch its Twingo next year. Volkswagen’s A-segment ID.1 is expected to debut within 12 months. Stellantis brands Peugeot, Citroen and Fiat have hinted at new entry-level models.
Smart has confirmed a direct successor to its Fortwo with the #2 model – though this could be built in China.
While the new European car class won’t directly impact UK vehicle rules, models built in Europe for European markets could also be sold in Britain.
