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Trends in motorization 2025: increase prices, decrease supply, Chinese brands.

Trendy w motoryzacji 2025: wzrost cen, spadek podaży, chińskie marki

The motor market in Europe is acting in the situation of legal changes and environmental restrictions. How 2025 year does the presidents of companies related to the motor industry? How do they assess the situation under the direction of their development, trends, opportunities and threats? What are the predictions for the coming months in view of markets related to widely understood mobility?

  • The year 2025 will be the time test for the motorization in Europe, which will have to adjust to the requirements of the EU Directive Clear Air For Europe (CAFE), applicable from beginning January.
  • Producers have to choose two scenarios: increase the price of solar cars, that is shift the cost penalties to consumers; balance emissions with higher sales of electric cars of the brand, with the purpose of reducing penalties.
  • Rental with minimum commitment as to the period of use and type of

    vehicle becomes very important for customers in periods of economic instability. Not having certainty about the sustainability of

    the demand for their services, they are more willing to borrow vehicles.

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– The current macroeconomic situation, on which the functioning of economies depends, can be compared to the wrecked ocean. Strongly changes the perception of the economic world, which until this time has based on harmonious globalization and provided businesses with relaxed rejunctions, familiar waters, and then the last 2-3 years have been an unrelenting storm, directing business and more into the side isolationism. In this new reality the motor market, especially in Europe, is also under a large pressure to adapt to the new environmental view, according to which should look different. This is an additional element of change, which makes even more difficult to assess its development – says Paweł Piórkowski, president Hertz Poland.

Motorization market 2025

The year 2025 will be a time test for the motorization in Europe,which will have to adjust to the requirements of the EU Clear Air For Europe (CAFE), in force from early January. Fulfilling the assumptions of the “Fit for 55” package, introduces its more restrictive limits of CO2 emissions for car exhaust combined with new measurement methods and establishes penalties for their exceedance. According to CAFE, in this year the average emissions of cars sold by the brand in the year is to be reduced from 118 g/km to 93,6 g/km, a exceedance of the standard will incur a penalty of 100 euros per 1 gram multiplied by the volume of yearly sales of the whole brand. According to estimates, if producers are unable to take measures to reduce emissions of fumes, they may be charged with penalties of each 12-18 billion euro, which in converted to one car will be about about 1200-1800 euro.

– Producers have to choose two scenarios: the first is to increase the price of solar cars, that is to transfer the costs to consumers, while the second is to balance emissions with higher sales of electric cars of a brand, in to reduce penalties. This is bad information for markets such as Poland, where sales of cars on current are low, because if producers adopt a strategy to balance emissions sales of electricity, they move then to other European markets, with higher demand for cars EV, where they will not pay high penalties. For Poland this means less availability of new solar cars, because selling such cars will become unprofitable business-wise. This problem, though to a lesser degree, has

however affected all Europe, because autos are electric, after years of growth, in the

last year they recorded declines in shares, affected by

the high price, limit subsidies and concerns of users. Lower sales of electrics will result in increased penalties and manufacturers will be forced to withdraw from the European markets low-margin fuel cars of classes A and B and will fail to offer cars of classical power out Europe, where there is no limitations – comments Marcin Nivette, President Nivette Fleet Management.

Marcin Nivette, President Nivette Fleet Management (photo. mat. press.) Marcin Nivette, president Nivette Fleet Management (photo. mat. press.)

Europe, China, Poland

In Europe, facing the need for salesof electric cars, producers will take initiatives that may encourage demand. In 2025 year they have to big scale appear small, urban models EV in affordable price of less than 25 thousand euros. Pressure on European manufacturers will also be exerted by low-cost Chinese brands, like BYD, MG or Omoda, which, supported by subsidies, will conduct expansion in Europe and will conquer the market, if native brands are not competitive. This is not only electric cars, but also traditional, and therefore a potential lack in the supply of fuel cars may be filled by Chinese brands. There is still one chance, that the EU will slow in the longer period of implementing and stronger emission standards for exhaust cars, when there are starting appearances in the public space, that this is generating serious problems in the European economy.

– By considering the aspect of EV sales in Poland, the situation will not improve, government program subsidies to purchases of autos electric, starting at end January 2025, because in unlike from the finished already program “My electrician”, excludes it from funding larger companies, in this leasing and fleet, which have ordered a large lots of vehicles EV, having to do this potential. Restricting the program only to physical persons and persons conducting one business in an inevitable way causes decreasing demand for cars electric in Poland – assesses Marcin Nivette.

The stimulation of the car market in Poland could have an impact on declining percentage rates, which according to forecasts economists should occur in the next time, however because of the  political coloring of this decision, it stands under a big question.

Fuelled, hybrids, electrics

What autos will People and fleet companies buy in Poland in 2025? Polans are still willing to buy used fuel cars from imports, but this trend is widening by interest in hybrids, which now in high quantity supply the market of used autos after resale from fleet. In fleet purchases they will continue to dominate vehicles with hybrid power, especially in companies with representatives serving distant territories. Firms will only however increasingly tame with electric cars, primarily because of the reporting requirement ESG, which from the beginning of the current year is obligatory for large companies. Companies international, which.introduce these standards globally, begin to include in tendering for contractors the necessity of presenting actions for the environment, and also the social responsibility and organizational culture in the company. These new formal obligations, including demonstrating reduction of the carbon footprint, will encourage the and wider introduction in companies of autos on current, in first order as cars office or pulses, which drive in Within a given city.

– Electrification reaches the companies by different ways, for example as a replacement car for time of service car service, because dealers, who have on staff an electric car, have to use it. contact with EV becomes so inevitable, that’s why NFM as a flotation management company attempts to educate and train its customers and their employees in this area, that they feel confident, independent of the type of auto, which they will drive. In my judgment electromobility will develop, but will lose dynamics. Regulations on manufacturers in the motorization market, determining the direction and the tempo of technological change, were determined as early as in

the other world. Today that world has changed, and the guidelines, no longer adapted to

it, are still in power. This situation has

characterized as a catastrophe, because societies will not want to accept the sacrifice of their prosperity for new environmental standards, which only Europe is trying to implement, requiring their producers to comply with strict EU standards. This results in huge costs lowering the competitiveness of European economies against the rest of the world. Chinese manufacturers with their technology cars electric and access to key resources, which already enable to produce cheaper, they reap another competitive advantage partly because, that they do not oblige these requirements. In further perspective this would inevitably concern Europe to dispose of the motor market for import from the United States or China. In effect this would mean a pronounced weakening of the European economy, which would fall from the group of world leaders on its own wish – Piórkowski points out.

Pawel Piórkowski, President Hertz Poland (photo. mat. press.) Paweł Piórkowski, president Hertz Poland (photo. mat. press.)

Market motorcyclewaits

Today the motor market is in suspense, waiting for the turn situation. Possible are two directions of development events. The first option is to stay Europe on that declared before years of the course, with which European producers and the European economy will try to some some way, but with weak perspectives. The second option assumes, that the EU or some of its countries will decide to change these regulations. Of course, no knows how these may change, a on this change depends very much. Makers of cars are pushing, because they are in a difficult situation because of the huge investments in the development of electromobility, a reversing this process would be for they need to redesign the adopted path of development.

– An invigorating influence on this pat may have a non-economic factor, which is the take of power in the US by Donald Trump. Of course, in particular for Europe, the key is also the development of the situation in Ukraine. There are factors, on which we have no influence. In relation to this when making investment or development decisions companies make far far from caution – considers Paweł Piórkowski.

Declining supply, increasing prices, brands Chinese

The effect of the current state is increasing costs of operating business, a – which is followed by – an increase in prices in the automotive industry, which is not accepted by customers. This increase in prices will also be affected by punishments for exceeding new, higher emission standards for exhaust emissions, applicable in the EU from beginning 2025 year under the Directive CAFE. All because indicates that those new, additional costs will have to be absorbed by the base price of cars, because seems impossible, that companies producing autos in the territory of the EU would be able to balance its respectively high sales of electric cars in Europe.

– Prices of cars in Europe may decline as a result of the strengthening activity of Chinese manufacturers, who probably have the potential, to do this. In consequence this would mean a price war between new and existing producers. It doesn’t seem that the market has the capacity to generate that quantity of demand, that the appearance on it of new players doesn’t mean the necessity of eliminating some of the already present firms. On the other hand from the other party.It would kill the European economy, so it would start a fight “on tariffs” – remarks Paweł Piórkowski.

In Poland, these worldly interactions are imposed on native conditions. The latest subset of the “My electricity” excludes from the group of beneficiaries enterprises larger than one person business, this also eliminating from the project entities buying new autos to large fleets in wholesale quantities, a so that they could support the development of electromobility on a wide scale. In light of announcements by manufacturers about limiting the supply of conventional cars in the situation of low sales of electric cars in the market, for Poland this means in practice an even increase in prices than in other countries in Europe. For the Polish motor industry this is a very disturbing scenario.

The rent-a-car

– The aforementioned factors, i.e. limited supply of conventional cars and increase of their prices, resulting from the restrictive EU environmental strategy, with a lack of support for electromobility from the state, will generate a number of challenges for the rent-a-car (RAC) industry. Between others because that the short-term rental car industry is based on fuel vehicles because of their lower cost total and preference of business customers, who come on business, often from abroad, who do not want experience in foreign environments, who do not know the state of infrastructure charging a country. In addition to the weakening European economy will create pressureonsavingsinhomeandbusinessbudgets,whichwouldreducetravel,bothtourism,andservice,whicharethebasisofthisbusiness.Nothelpingisthestagnationoftheessentialforusmarketautosused,whichislosingonthepowergold.NottheRACindustry,whichintheminutedifficultfortheyearsverymatured,She seesalsohugeopportunitiesinthecurrentsituationduetoherexperienceinevaluatingthemarket environment.Drawingonthehorizonincreasedcompetitionamongcarmanufacturersgivesmoreargumentstocompanies,inwhoseactivityisinvolvedinpurchasingautos.TheappearanceofChinesemarketswouldincreasecompetitivenessinthemarketbygoingoutoftheexistinggroupofAmerican,Korean,JapaneseandEuropeansuppliersofsmoke cars.Newplayerswouldstimulatethefightforthecustomer,whichwouldincreasenegotiationopportunitiesforsuchcompanies,as.HertzPoland.Of coursethe choiceof a newsupplierwouldbe subject todifferenttyperisks,such aslackofavailabilityofparts,orlowresidualvalueaut-proposesPawełPiórkowski.

Inuncertaintimesimportanceis alsobecomingabasicfeatureoftheshort-termrentalauto industry,that isflexibility.Rentalwithminimumcommitmenttotheperiodofuseandtypeofvehiclebecomesveryimportantforcustomersinperiodsofeconomic instability.Not havingcertaintyaboutthepersistencyofthedemandfortheirservices,theyaremorewillingto lendvehiclesinaformmaximallyadaptedtotheirongoingneeds.FlexibilityintheRACbranchcanproveto beanattributealsointhesituation,whencompaniesdecidehowevertointensivelyimplementnew”greenmobility”.

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