The European Union is reconsidering its landmark 2035 ban on new internal combustion engine car sales, facing pressure from a struggling auto industry and some member states, despite warnings from environmental groups and proponents of electric vehicles.
Discussions have resumed in Brussels regarding the rules that would prohibit the sale of new fossil-fuel cars. The prospect of an economic recession, a slower-than-expected transition to electric vehicles (EVs), and intense lobbying from car manufacturers are prompting a potential legislative shift.
European automakers contend that the original 2035 deadline no longer aligns with the pace of infrastructure development. Mercedes-Benz CEO Ola Källenius stated that the current environment necessitates a “more flexible strategy” to safeguard jobs, maintain competitiveness, and provide manufacturers with resources to fund the EV transition.
In October, EU leaders urged the European Commission to review the requirements and propose a relaxation of the rules by the end of the year. Possible adjustments include allowing the sale of hybrid vehicles and those powered by synthetic fuels or biofuels after 2035, with the industry advocating for these models to be treated as zero-emission, a stance the EU previously rejected.
However, non-governmental organizations warn that easing these regulations could decelerate the development of electric vehicles and strengthen the market position of Chinese manufacturers. Transport & Environment, an advocacy group, stated that such an approach “undermines the basis of European climate legislation” and could harm the competitiveness of the European market.
National governments also hold diverse positions on the issue. Germany, where the automotive sector accounts for approximately 800,000 jobs, actively supports a longer transition phase for the industry. France, while backing flexible formulations, has emphasized the importance of not abandoning the overall course towards electrification, noting that rigorous regulations have already spurred the construction of new gigafactories and significant investment in battery technology.
Some manufacturers, like BMW, argue that the proposed changes do not go far enough. They criticize the EU’s focus solely on exhaust emissions, rather than considering the total carbon footprint of vehicle production. Environmental organizations also highlight that plug-in hybrids often consume more fuel than declared and do not serve as a genuine bridge to full electrification.
Companies that have already committed heavily to electric vehicles caution that revised rules could send a misleading signal to the market, thereby delaying the broader transition. These firms assert that the European Union risks falling behind global competitors if it abandons its strict guidelines.
The European Union is expected to present its proposals soon. The upcoming decision will significantly influence the speed of the EV transition, future infrastructure investments, and Europe’s competitive standing against rivals from China and the United States.