en.Wedoany.com Reported - Volkswagen's fuel-powered vehicle prices will increase by 1.0% to 1.2% starting July 2. According to an internal letter to dealers obtained by *Automobilwoche*, this price adjustment stems from rising costs due to the new Euro 7 emission standards.

A Volkswagen spokesperson explained that as the product line transitions to EU7 emission standards, manufacturers face increased costs, necessitating the price adjustment. The Euro 7 standard not only regulates vehicle emission values but also, for the first time, includes particulate matter from brake and tire wear within its scope. The industry expects that other automakers will also have to pass on the increased costs to consumers.

The new emission standards will take effect for new vehicle models on November 29, 2026, and will apply to all newly registered vehicles one year later. To ensure the entire product line complies before the deadline, the transition process has already begun. However, this price increase is significantly lower than the adjustment cycles in previous years, when prices were raised once or twice annually by about 2%, citing alignment with overall inflation. Given that the inflation rate in June was 2.6%, the actual price of Volkswagen models has effectively decreased.

Karsten Schnake, Volkswagen's board member for procurement, warned in an interview with *Automobilwoche* that the progress of the Middle East war and the resulting blockade of the Strait of Hormuz are potential risk factors. He stated that if a solution is found by mid-year, the impact could be mitigated; but if the conflict persists longer, the company will face significant repercussions and soaring costs.

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