By Nick Carey

LONDON (Reuters) – Proposed Euro 7 emissions regulations will lead to direct costs for auto manufacturers that are up to 10 times higher than the European Commission’s forecasts, Europe’s car industry group said on Tuesday, citing a new study.

The European Automobile Manufacturers Association (ACEA) said a study by consultancy Frontier Economics found that the direct costs for petrol cars and vans – including type approval, investment and equipment costs – to comply with Euro 7 would be 1,862 euros ($2,050) per vehicle, versus the Commission’s estimate of 184 euros per vehicle.

The study said direct costs for buses and trucks would average 11,707 euros per vehicle, compared with a Commission estimate of 2,765 euros.

The ACEA said the increase in prices for consumers and companies buying those vehicles would be even higher.

“The European auto industry is committed to further reducing emissions,” ACEA Director General Sigrid de Vries said in a statement. “However, the Euro 7 proposal is simply not the right way to do this, as it would have an extremely low environmental impact at an extremely high cost.”

European carmakers have been fighting back against Euro 7, arguing the regulations are too costly and unnecessary because the industry is spending tens of billions of euros in zero-emission electric vehicles (EVs).

But the European Commission says the regulations are needed to cut harmful emissions and prevent a repeat of Volkswagen AG’s so-called Dieselgate emissions scandal of 2015.

European Union countries and lawmakers will negotiate proposals this year for tighter limits for diesel – but not petrol – car emissions and for heavy-duty trucks and buses, including nitrogen oxide and carbon monoxide.

Euro 7 would take effect in mid-2025 for cars and in mid-2027 for trucks and buses.

Last week Italy’s transport minister said the country and its EU allies “have the numbers” to block Euro 7.

($1 = 0.9084 euro)

(Reporting by Nick Carey in London; Editing by Matthew Lewis)

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