Dacia CEO Katrin Adt has voiced the automotive industry's growing frustration. In an interview with Autocar, she argued that increasingly stringent regulations are driving up vehicle prices and undermining the vitality of the EU car market. For Adt, the regulatory burden is now squeezing the small car segment that should be the backbone of affordable mobility.
Since 2019, Europe has lost around three million cars and the market has never recovered to pre-pandemic levels. Adt described the ripple effect felt across 10 plants and millions of components such as tyres, seats, and wipers. According to her, a quarter of Dacia's R&D budget and engineering workforce is now absorbed by regulatory compliance, with some 107 additional measures to meet by the end of the decade.
Adt proposed at least a moratorium on new rules for small cars. She noted that some mandatory advanced features deliver little perceived value to consumers. Echoing her view, Renault CEO Fabrice Cambolive called it a tsunami of regulation and wished for a ten-year moratorium. This way, industrial efforts could focus on affordability and electrification.
The statements come amid a massive transition to electrification that demands heavy investment. Manufacturers like Dacia and Renault are struggling to keep prices competitive, especially in the low-margin small car segment. Ever-growing emissions and safety rules are seen as adding pressure, particularly as market demand has yet to fully recover.
If these calls go unanswered, the choice of affordable cars in Europe could shrink further. The impact would be felt not only by manufacturers but also by consumers who rely on budget-friendly vehicles for daily mobility. Dacia and Renault seem determined to ensure that the transition to a zero-emission future does not leave most consumers behind.
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