European OEM Strategies for Passenger Car CO2 Emissions Compliance Report 2022-2030: The Tipping Point for OEMs to Move to Zero-emissions Driving as a Means for Compliance is Fast Approaching

Dublin, Nov. 07, 2022 (GLOBE NEWSWIRE) -- The "European OEM Strategies for Passenger Car CO2 Emissions Compliance Towards 2030" report has been added to's offering.

Industry-wide fleet average CO2 emission targets for 2025 have been set to be 15% lower than 2020 levels, while 2030 levels will be 37.5% lower than 2020 levels. These targets are more stringent and are for cars only (separate targets are set for LCVs).

Once the focus area for emission reduction, developments in IC engines no longer play an integral role in emissions compliance. Though investment in IC engine development is still beneficial, it is not the primary road to compliance. The availability of flexibilities played a critical role in most OEMs' compliance in 2020. However, these flexibilities reduce year-on-year, with only eco-innovations continuing to be active while moving towards ZLEV mandates of 15% from 2025 and 35% from 2030.

Most European and American OEMs have increased the sale of PHEVs and BEVs for compliance but Asian OEMs have been late in adopting electric powertrains due to the strong focus on hybridisation. Electrification is fast becoming the de-facto requirement for compliance. All OEMs accelerating electrification, which is showing a higher return on investment from a compliance perspective and will shortly do so from the revenue perspective as well.

Europe has been at the forefront of engine downsizing, which is evident from the high share of direct-injected, turbocharged gasoline engines. Alternate combustion cycles, Atkinson and Miller, are also expected to find increased adoption, with Atkinson Cycle being adopted by OEMs with full hybrids.

With the adoption of diesel powertrains declining in Europe since the dieselgate scandal, mHEVs and FHEVs have stepped up to meet the demand. In the short term, mHEVs are projected to be the leading xEV type and post the highest growth rates. The primary driver for increased xEV adoption was to meet the targets for 2020.

The adoption of xEVs however, varies between OEMs, with BMW, Mercedes-Benz and Volvo prioritising PHEVs, while Kia, Renault-Nissan, and Volkswagen focus more on BEVs. Asian OEMs, meanwhile, focus on hybridisation and overall efficiency improvement. With OEMs meeting the targets for 2020 and 2021, it is now clear that maintaining the xEV ratio will suffice until the next set of targets come into effect.

Key Topics Covered:

1. Executive Summary

  • Technology for Improving Fuel Economy and Emissions
  • Technology Impact on CO2 Compliance
  • CO2 Emission Projection by OEM Towards 2030
  • Actual Versus Target Compared to xEV Penetration

2. Strategic Imperatives

  • Why Is It Increasingly Difficult to Grow?
  • The Strategic Imperative
  • The Impact of the Top 3 Strategic Imperatives on the EU and UK Powertrain Industry
  • Growth Opportunities Fuel the Growth Pipeline Engine

3. Growth Environment and Scope - European Powertrain Industry

  • Research Scope
  • Vehicle Segmentation
  • Segmentation

4. Legislative and Market Overview

  • Regional Emissions and Testing Procedures
  • Global Passenger Car Corporate Average Fuel Economy Targets
  • EU and UK - Emissions Outlook
  • EU and UK Passenger Car Fleet Average CO2 Targets
  • Mass-based CO2 Targets by OEM Pool
  • Technology Roadmap: Powertrain Development Trends

5. CO2 Estimates and Technology Impact

  • Flexibilities Towards Fleet Average CO2 Emissions
  • Fleet Average CO2 Emissions by OEM Pool
  • Impact of WLTP on Fleet Average Emissions
  • Importance of Technology for Emissions Compliance
  • Forecasting Framework
  • Industry Average Performance

6. OEM Profiles

  • BMW Group
  • BMW Group: Impact of Technology on CO2 Compliance
  • Mercedes-Benz Group
  • Mercedes-Benz Group: Impact of Technology on CO2 Compliance
  • Ford Group
  • Ford Group: Impact of Technology on CO2 Compliance
  • Honda Group
  • Honda: Impact of Technology on CO2 Compliance
  • Hyundai-Kia Group
  • Hyundai-Kia Group: Impact of Technology on CO2 Compliance
  • Renault-Nissan Group
  • Renault-Nissan Group: Impact of Technology on CO2 Compliance
  • Stellantis Group
  • Stellantis: Impact of Technology on CO2 Compliance
  • Toyota Group
  • Toyota: Impact of Technology on CO2 Compliance
  • Volkswagen Group
  • Volkswagen Group: Impact of Technology on CO2 Compliance
  • Volvo Group
  • Volvo: Impact of Technology on CO2 Compliance

7. Growth Opportunity Universe

  • Growth Opportunity 1: OEM-supplier Partnerships for Electrification
  • Growth Opportunity 2: Increased Investment in Vehicle Electrification Through xEVs
  • Growth Opportunity 3: Optimising Combustion for Lowering Emissions

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