New research from Transport & Environment (T&E) has suggested that Mercedes-Benz is the only major EU carmaker that is currently not on track to comply with the European Union’s 2025–27 emissions standards.
According to T&E’s EV Progress Report, BMW, Stellantis, Renault and Volkswagen are expected to meet their 2025-27 emissions targets, with BMW expected to exceed compliance by 13 grams of CO₂ per kilometre.
Stellantis and Renault are poised to be 9 and 2 gCO₂/km overcompliant, respectively, while Volkswagen is forecast to ‘narrowly comply, with no margin to spare (0 gCO₂/km)’, T&E noted.
Mercedes-Benz is set to fall short of the target, unless the German carmaker purchases credits from other companies.
According to T&E, Mercedes ‘would be 10 gCO₂/km undercompliant and would need to pay Volvo Cars and Polestar to purchase credits from them in a so-called pooling deal.’
‘Foot off the gas’
T&E noted that the EU’s decision to postpone the emissions target deadline by two years has led manufacturers to ‘take their foot off the gas’ and is expected to lead to two million fewer electric cars being sold in the EU between 2025 and 2027.
The announcement of the delay coincided with rising price premiums for electric vehicles, which stood at 40% above combustion cars in June 2025, up from 30% earlier in the year.
Having said that, the market conditions continue to remain favourable for growing adoption of electric vehicles, with battery prices forecast to fall 27% between 2022 and the end of 2025, and by another 28% by 2027 compared to 2025 levels. Charging infrastructure is also progressing well, with 77% of the EU core highway network now boasting charging stations, and all Member States having already met or surpassed the number of public charging points required by the EU’s 2025 target
Electric car sales ‘surging’
“OEMs are painting a terrible picture because they want their targets weakened,” commented Lucien Mathieu, T&E cars director. “But the reality is that electric car sales are surging and emissions rules are key to that equation.
“By sticking to the agreed rules, Europe can give its automotive industry a fighting chance in the global EV race. But weakening the targets could see other manufacturers go the way of Mercedes which is falling behind on electrification and must buy credits from its competitors.”
Other markets continue to invest in EV adoption at a rapid rate, T&E noted, with market shares reaching 5% in India and Mexico, 13% in Indonesia, 24% in Thailand, and 30% in China.
Read more: 92% of global EV drivers ‘will never go back’, study claims
Open letter
Elsewhere, more than 150 companies from across Europe’s automotive, battery, charging and clean technology sectors have signed an open letter urging the European Commission to stand firm on the 2035 zero-emission target, and support it with bold industrial action.
It comes as many European automotive operators are pressuring the Commission to rein in the agreed legislation.
“It’s hard not to notice how the carmakers that are most vocal about watering down agreed legislation are those that are slowest to embrace the EV transition,” commented Dominic Phinn, head of transport at Climate Group. “It goes against the overwhelming demand for EVs from the many businesses – including members of our EV100 network – who are fully committed to smarter, cleaner road transport and want to see a competitive EU that leads the global shift.
“Sales are surging, models are diversifying, charging infrastructure is rapidly expanding – and forward-thinking carmakers are doing the right thing because they know their choice is simple. Either raise your EV game today, or be irrelevant tomorrow.” Read more here and here.
Read more: Larger EVs ‘will not solve the climate crisis’, report claims
