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New EU Car Rules Could Push Prices Even Higher

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New EU safety rules arriving in July could add further costs to newly sold vehicles across Europe. Credit : stock adobe

Buying a new car in Europe could become even more expensive from July 7. New EU safety rules coming into force next month will require additional technology in newly sold vehicles, adding to a trend that has already seen the price of many entry level cars climb sharply in recent years. Industry figures have repeatedly warned that smaller and more affordable models are feeling the pressure most.

Not so long ago, buying a basic new car was relatively straightforward. You picked the engine, chose a colour, maybe added air conditioning or a better radio and drove away.

Today, even the cheapest models come loaded with cameras, sensors, warning systems and electronic assistants that quietly monitor what is happening both inside and outside the vehicle.

Most drivers never specifically asked for many of these features. Yet they are increasingly becoming part of every new car sold in Europe.

That trend will continue on July 7 when a new phase of European safety rules comes into effect. The goal is simple enough. European authorities want to reduce serious accidents and save lives.

Few people would argue with that but the debate starts when the conversation turns to cost because while safety technology may improve protection on the road, someone still has to pay for it and ultimately that person is usually the customer.

Why small cars are becoming a rare sight

One of the biggest changes in the European car market over the last decade has been the gradual disappearance of low cost city cars.

Manufacturers have repeatedly warned that producing small vehicles is becoming increasingly difficult.

The reason isn’t just inflation. It’s also the growing amount of mandatory equipment required on every new vehicle.

A large SUV selling for €40,000 or €50,000 can absorb extra technology costs relatively easily. A compact urban car selling for a fraction of that price has much less room for additional expenses.

That reality has already pushed several manufacturers to rethink their smallest models.

Some have left the segment altogether. Others have raised prices to levels that would have seemed unthinkable a few years ago.

For buyers looking for a simple runabout to drive around town, the choices are becoming more limited with every passing year.

The technology drivers will be paying for

The July changes do not introduce a completely new generation of safety systems. Instead, they build on technologies that are already appearing in many recently launched cars.

Automatic emergency braking is one example. The systems already fitted to modern vehicles are becoming more sophisticated and are expected to react more effectively to pedestrians and cyclists.

Lane keeping technology is also being improved so that it can perform more reliably in difficult conditions, including poor weather and reduced visibility.

Driver monitoring systems are evolving as well. Rather than simply looking for signs of fatigue, newer systems are increasingly capable of detecting when a driver’s attention has drifted away from the road.

Behind every new safety feature sits a growing network of cameras, sensors and software. The technology may be largely invisible to drivers, but it adds complexity to the vehicle and increases production costs.

Each component may seem insignificant on its own. Together, they add complexity and cost.

The new rules also require vehicles to be technically prepared for the future installation of alcohol interlock devices. Contrary to some online claims, drivers will not suddenly have to take a breath test every time they start their car. The requirement concerns compatibility rather than mandatory use.

What drivers really think about all this

Talk to motorists and opinions tend to be divided. Some welcome every new safety feature. They point out that modern cars are safer than ever and argue that technology can help prevent mistakes that sometimes lead to serious accidents.

Others feel the balance has shifted too far. Many complain about constant warnings, audible alerts and electronic interventions that can make newer vehicles feel less relaxing to drive than older models.

There is also a growing frustration about prices.

For younger drivers, families on tighter budgets and retirees looking for a second vehicle, buying a new car is becoming increasingly difficult.

That concern is unlikely to disappear any time soon.

The European Union’s broader objective remains reducing deaths and serious injuries on the road, and safety technology is expected to play an important role in that strategy.

As a result, few experts expect regulators to slow down. If anything, cars are likely to become even more sophisticated in the years ahead.

For consumers, however, the immediate question is much simpler.

How much more expensive can new cars become before ordinary buyers start walking away? That is the challenge facing both manufacturers and regulators as Europe enters another chapter in the transformation of the modern car and for anyone planning to visit a dealership after July 7, it may be the price tag rather than the technology that attracts the most attention.

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