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Analysis of the Impact of Euro VII on European Heavy-Duty Truck Market 

Analysis of the Impact of Euro VII on European Heavy-Duty Truck Market 

  • January 2016
  • 10 pages
  • ID: 3564613
  • Format: PDF
  • Frost & Sullivan

Summary

Table of Contents

Analysis of the Impact of Euro VII on European Heavy-Duty Truck Market : Euro VII Regulations to Increase Price of Trucks by 5–10% between 2019 and 2022

Increased environmental awareness has forced the European Union commission to focus on bettering air quality and the trucking industry to improve conformity to regulations. Euro VII regulations, similar to the proposed North American greenhouse gas (GHG) regulations, are expected to be focussed on the improvement of overall freight efficiency. The improvement of technologies is expected to increase the price of trucks which will also have higher maintenance and servicing costs. Truck makers in Europe are expected to look at holistic product improvement in trucks spanning powertrain, chassis, aerodynamics, and other aspects of vehicle design, which this article focusses on, in anticipation of the regulations.

Introduction

Slight improvement in economic conditions coupled with urbanization and continued reliance on diesel fuel are all converging to further worsen the air quality in several European countries. This has remained a concern for the European Union leading to the proposal and development of Euro VII regulations. The increasing costs caused by development of technology, the competitive nature of the trucking industry, regulatory impact on transport companies, and the volatile nature of fuel prices have had an adverse impact on the European trucking industry. Increased environmental awareness has mounted pressure on the trucking industry by necessitating increased conformity to the regulations and subsequently, leading to higher prices of trucks. As the European Union (EU) considers greenhouse gas (GHG) reductions in the heavy-duty (HD) industry, policies including fuel economy regulations and financial incentives will determine the fuel efficiency of HD trucks in Europe in the future. Euro emission regulations, up until Euro VI, have been aimed at reduction of NOx, particulate matter, and hydrocarbons; future regulations are expected to be focussed on improvement of overall freight efficiency. In particular, Euro VII is expected to be targeted at truck-related CO2 emissions and consequently, fuel economy.

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