The major challenge all brands face will be balancing the mix of profitable combustion models with CO2-saving EVs that help avoid hefty fines.

Automakers in 2023 will continue to balance the need to launch profitable combustion-engine models with pricier electric equivalents that help lower average CO2 and avoiding costly EU fines.

BMW, for example, will launch a new version of the 5 Series large sedan and station wagon, along with a full-electric derivative, the i5. Meanwhile, sister brand Mini’s production strategy is to build combustion versions of the brand’s core small car in England while contracting partner Great Wall to produce the electric version of the car in China.

Europe’s small SUV segment is poised to see rapid growth as new products from Hyundai (which will replace the Kona), Toyota and Honda arrive. Fiat is also expected to add an electric version of its new small SUV, a sister car to the Polish-built Jeep Avenger – the U.S. brand’s first full-electric model.

Volkswagen, meanwhile, will start sales of the ID7, a rival to the Tesla Model 3, the German automaker’s biggest global competitor in the electric car space based on sales volume. The ID7’s big market will be China, VW has said, but sales will be global.

XM
The XM plug-in hybrid large SUV is the first stand-alone vehicle from the M performance brand since the BMW M1 launched five decades ago. The XM will be aimed at sporty luxury SUVs such as the Lamborghini Urus and Aston Martin DBX.

Ferrari
Purosangue
Ferrari’s first four-door model, the Purosangue SUV, is expected to start reaching customers in Europe in the second quarter of 2023. At a starting price of 390,000 euros in Italy, the V-12 Purosangue will be the second-most expensive regular production Ferrari after the SF90. The model has a top speed of more than 310 kph (193 mph) and accelerates from 0 to 100 kph in 3.3 seconds.

Fiat
Small SUV
Fiat’s small SUV is expected to be unveiled in 2023. The car will be a sibling of the electric- and gasoline-powered variants of the Jeep Avenger. Both small SUVs will be built at parent Stellantis’s plant in Tychy, Poland.

Ford
Explorer Sport EV
Ford is expected to unveil in March a full-electric compact SUV that will be underpinned by Volkswagen Group’s MEB architecture. The car, likely to be called Explorer Sport, will produced in Cologne, Germany. Ford has said the SUV will have a driving range of 500 km (311 mile) on a single charge.
Jeep
Avenger
The Avenger arrives next year to give Jeep its first EV and its second entry in the small SUV category, Europe's biggest segment, alongside the Renegade. The car will be sold as an EV in most markets but offered with a gasoline engine in Italy and Spain. It will be built at Stellantis’ factory in Poland.

Honda
ZR-V
The ZR-V compact SUV will be positioned between the small HR-V small SUV small and the midsize CR-V crossover in the automaker’s SUV lineup. The ZR-V will be hybrid only.

Small electric SUV
The Japanese automaker will also begin sales of the e:Ny1 full-electric SUV, which is expected to compete against electric versions of the Hyundai Kona and MG ZS.

CR-V
The CR-V midsize SUV will be replaced by a new model that will be offered with full-hybrid and plug-in-hybrid drivetrains. The plug-in hybrid will be a first for Honda in Europe.

Ioniq 6
Hyundai’s Tesla Model 3 challenger is built on the same e-GMP electric platform as the Ioniq 5 and EV6 from sister brand Kia EV6. The Ioniq 6’s focus on aerodynamics has resulted in a range of 631 km (381 miles) from its 77-kilowatt-hour battery.
Maserati
GranTurismo
The Stellantis luxury brand finally replaces the GranTurismo in 2023 with full-electric and gasoline engine versions of the coupe. The new GranTurismo will cost about 50,000 euros more than the first generation, which went out of production in 2019, resulting in an expected price tag of 200,000 euros.

Mercedes-Benz
E-Class
The new-generation E-Class large sedan and wagon are due in 2023. The most efficient model in the range will be a plug-in hybrid variant that is likely to have a 28.6-kWh battery that provide substantial electric-only range. Those brand’s full-electric large sedan is the EQE, which went on sale in 2022.

EQE SUV
Deliveries are set to start in early 2023 for the EQE SUV. Production of the large SUV started in December at Mercedes’ U.S. factory in Vance, Alabama. The EQE SUV will have a 90-kWh battery that provides a maximum range of 590 km (316 miles) based on WLTP testing.

Mini
Countryman
The replacement for Mini’s compact SUV arrives in 2023, with production shifting from the Netherlands to parent BMW Group’s plant in Leipzig, Germany. Mini will offer an electric version for the first time, alongside gasoline and diesel variants.

Hatch
The brand’s new hatchback will replace Mini’s current version of the iconic small car. The EV will come to Europe from China as part of BMW Group’s relationship with Great Wall Motor. Mini’s plant in Oxford, England, will make the new gasoline-powered version of the model.
Smart
#1
The first new car from Smart under joint Mercedes-Geely ownership, the full-electric #1 (called the hashtag 1) is a small crossover with a range of 440 km (270 miles). The #1, which arrived in showrooms in 2023, is built on Geely’s SEA platform.

Opel/Vauxhall
Astra Electric
An electric drivetrain will be added to the compact hatch and wagon’s range that includes gasoline, diesel and plug-in hybrid options. The car will share the Peugeot e-308’s 54-kWh battery, which features a new high-nickel chemistry take helps give it a 416-km (259-mile) range.

Peugeot
3008
Peugeot is expected to show the replacement for its popular 3008 compact SUV in 2023. No details have been released but expect a plug-in hybrid drivetrain to be offered alongside a 1.2-liter turbo gasoline engine.

Renault
Espace
Renault is looking to replace the Espace minivan with a stretched version of the Austral compact SUV that will offer seven seats. Engines would likely mirror those offered in the recently launched Austral, which would include mild hybrid gasoline versions topped by a full-hybrid model.

Skoda
Superb
Skoda has said the new-generation Superb midsize family will arrive in 2023. It will be built alongside the mechanically similar VW Passat at parent VW Group’s factory in Bratislava, Slovakia, instead of the Czech brand’s home country. The Passat is also expected to be revealed, but no details have been released.

Toyota
Small SUV
The Japanese brand is expected to reveal a small electric SUV for Europe in 2023, giving it a key contender against the likes of the Hyundai Kona Electric, Peugeot e-2008 and Opel/Vauxhall Mokka-e. Details are scarce, but the model will be sold under Toyota’s bZ subbrand used for electric vehicles.

Volkswagen
ID7
VW’s answer to the Tesla Model 3, expected to be called ID7, will be unveiled in its near production-ready form at the Consumer Electronics Show (CES) in Las Vegas in January. Formerly known as ID Aero, the EV car will be built on VW’s MEB platform and is expected to be available as a wagon as well. The aerodynamic shape will help give the production version a range of up to 620 km (385 miles) from a 77-kWh battery, based on WLTP standards, VW said.

Passat
VW’s segment-topping Passat midsize sedan and wagon will be revealed in 2023 ahead of sales starting in 2024. The new car is closely related to the forthcoming new Skoda Superb.
Volvo
EX90
The seven-seat EX90 premium large SUV will start reaching customers in 2023. Built on an all-electric platform, the Swedish brand’s flagship SUV has a 111-kWh battery that delivers 496 hp and a range of up to 600 km (373 miles). The EX90’s infotainment system runs on a 15-inch center display powered by Google's Android Automotive operating system.