The European Union is set to introduce a new category for compact electric cars to reduce manufacturing costs and compete with Chinese brands. The “E car” category will have lighter technical standards and could sell for 10-20% less than current offerings. The EU aims to help European manufacturers like Volkswagen and Renault compete on price and qualify for incentives tied to the new class. The move could impact Japanese manufacturers specializing in kei cars, potentially allowing some models to be sold in Europe without modifications. EU’s new compact EV classification may reshape the automotive market in the region.

Read more at Yahoo Finance: EU prepares new compact EV class in push to cut costs