New Study Proposes That Cars Should Be Taxed Based On Their Size

Hummer EV Pickup
Image Credit: GMC.

Cars have been getting bigger for years, and a new study argues that the trend is becoming harder for cities to ignore. Researchers say rising vehicle dimensions are affecting safety, parking availability, and energy consumption.

The report, published by Transport & Environment, focuses on what it calls “carspreading.” The term refers to the steady growth of new vehicles in length, width, height, and hood height.

According to the study, new cars sold in Europe have grown longer and taller almost every year since 2000. Researchers say that growth has continued even as average household sizes have become smaller.

The study proposes several measures to slow the trend, including taxes and parking charges based on vehicle size. It also suggests tighter limits on hood height and vehicle width.

Bigger Cars, Bigger Problems

GMC Hummer EV king crab.
Image Credit: GMC.

Researchers warn that larger vehicles take up more public space, particularly in dense urban areas. If current trends continue, the study estimates that cities could lose between 8.5 and 14 percent of on-street parking capacity by 2040.

London and Berlin could each lose around 100,000 parking spaces under that scenario. For cities already struggling with congestion and limited curb space, that would make daily driving and parking even more difficult.

The study also argues that oversized vehicles create wider consequences beyond inconvenience. Bigger cars generally weigh more, consume more energy, and require more materials to build.

Safety Is A Major Concern

Vehicle height is one of the report’s biggest safety concerns. Researchers point to studies suggesting that taller front ends and higher hoods can increase injury severity for pedestrians and cyclists.

That risk is especially relevant as SUVs and crossovers continue replacing smaller hatchbacks and sedans. A taller hood is more likely to strike vulnerable road users higher on the body, which can lead to more serious injuries.

Transport & Environment estimates that continuing current vehicle-growth trends could contribute to roughly 2,570 additional pedestrian and cyclist deaths in Europe by 2040 compared with a scenario where cars become smaller.

The Energy Cost Of Larger Vehicles

The report also says vehicle size could make the transition to electric cars more expensive and less efficient. Larger EVs need bigger batteries, more electricity, and more raw materials.

Researchers estimate that if vehicles keep growing, Europe’s electric fleet could require an extra 22.5 terawatt-hours of electricity annually by 2040. The study compares that to the output of about 1,500 onshore wind turbines.

Gasoline and diesel vehicles would also remain affected. The report projects that larger combustion vehicles could require more than 100 million additional barrels of imported oil through 2040.

Proposed Taxes And Size Limits

2026 Volkswagen ID. Polo GTI
Photo Courtesy: Autorepublika.

To address the issue, the study recommends taxing vehicles based on their physical dimensions. It also proposes parking fees that increase with size, giving drivers a financial reason to choose smaller cars.

Other suggested measures include a hood-height cap of 85 centimeters and a width limit of 192 centimeters. The report also recommends incentives for smaller EVs measuring less than 4.2 meters long.

Whether policymakers adopt those ideas remains uncertain. SUVs and crossovers remain extremely popular, and automakers have strong financial incentives to keep building larger, higher-margin vehicles.

A Fight Over The Future Of Car Design

The study does not argue that every driver should give up larger vehicles. Instead, it suggests that cities and regulators should stop treating all cars as though they use the same amount of space and create the same risks.

For automakers, the bigger challenge may be making smaller vehicles desirable again. For policymakers, the question is whether size-based taxes can influence buyer behavior without unfairly punishing families and workers who genuinely need larger vehicles.

The debate is likely to grow as cities become more crowded and vehicles continue expanding. If researchers are right, the future of car taxation may depend not only on emissions, but on how much physical space a vehicle occupies.

Author: Andre Nalin

Title: Writer

Andre has worked as a writer and editor for multiple car and motorcycle publications over the last decade, but he has reverted to freelancing these days. He has accumulated a ton of seat time during his ridiculous road trips in highly unsuitable vehicles, and he’s built magazine-featured cars. He prefers it when his bikes and cars are fast and loud, but if he had to pick one, he’d go with loud.

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