"Mandatory safety features and stringent emission norms in EU will affect sales of mini and small cars (costing US$10,000-US$15,000) the most as technology upgrades to meet these mandates cost more or less same (a few thousand dollars) for a small or mid-size car. Tougher EU rules require automakers to reduce average fleet CO2 emissions from 120.8 grams per kilometer (g/km) to 95 g/km by 2021 to 80.8 g/km by 2025.
Automakers operating on already thin margins on mini and small cars would find it difficult to absorb the extra cost. Tough standards adopted by the EU are good to control pollution and encourage new technologies, but risk making EU an unattractive market (at least for mid-term) for small cars." – Aman Madhok