Core Insights - Automakers are forming alliances to purchase carbon credits from electric vehicle companies to avoid potential fines from the European Union, which could reach up to 15 billion euros ($17.5 billion) [1][8] - The European Commission has allowed compliance based on average emissions over the period of 2025-2027, rather than solely on 2025 levels [1] Alliances and Collaborations - Nissan has formed a pool with Chinese EV giant BYD in October [3] - KG Mobility from South Korea partnered with Chinese EV maker Xpeng at the end of September [4] - Tesla established a pool in January with Stellantis, Toyota, Ford, Leapmotor, Mazda, and Subaru, with Honda and Suzuki joining in March [5] - A separate pool formed in January includes Mercedes, Volvo Car, Polestar, and Smart Automobile, with Geely holding significant stakes in these companies [6] Market Trends - Electric vehicles accounted for 12% of total European light vehicle sales last year, projected to rise to 15% this year, and expected to reach 24% by 2027 and 40% by the end of the decade according to AlixPartners [7]