European carmakers must fasten their seat belts, or they may have to scramble to meet the requirements of the ambitious EU emissions targets, Reuters reported on Tuesday.
If the automakers fail to comply within the deadline, they may have to pay a heavy amount as fine. European Union has been focusing to curb Carbon emissions as a part of climate action.
EU ambitions include cutting CO2 by 95 grammes per Km for 95 percent of the cars by 2020. All new cars in the EU must be compliant in 2021.
Automakers such as Volkswagen and PSA Group eyes to showcase their EV models and strategies at an auto show in Frankfurt this week, a move focused on cutting on carbon emissions within months. They will unveil the ID.3 compact and Opel Corsa-e mini respectively at the auto show on Tuesday.
However, the danger lies in capturing the unconvinced customers market because the technology is pricey and it could cause a dip in the profits of the industry already hampered by a slump in sales in the recent time.
The last few years have seen automakers from around the world come up with EV models, but now the time has come to sell them in large numbers amid low sales.
According to FEV Consulting estimates, to fulfil the targets, sales of EVs need to triple to 6 percent within two years, and hybrids surge fivefold to a 5% market share.