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EU’s 2035 Car Rule Faces Major Shift

by | Dec 16, 2025

Pressure from automakers and governments pushes Brussels to dilute the combustion-engine ban.
European carmakers would like to be able to sell hybrid vehicles after 2035 (source: Tech Xplore).

 

The European Union is poised to soften or drop its planned 2035 ban on new petrol and diesel car sales, a key plank of its climate policy first set in 2023. That ban aimed to phase out internal combustion engines entirely, including hybrids, to help the bloc reach carbon neutrality by 2050. But intense lobbying from automakers and some member states, especially Germany and Italy, has forced Brussels to reconsider the policy well before its scheduled 2026 review, tells Tech Xplore.

Under the proposed changes, the European Commission may replace the outright ban with a less stringent target, requiring a 90% reduction in fleet CO₂ emissions by 2035 instead of a 100% phase-out. That would allow a limited number of combustion-engine vehicles, plug-in hybrids, and range-extender models to remain on the market if they meet certain conditions. The shift is intended to give the automobile industry “breathing space” amid slow electric vehicle (EV) uptake, competitive pressure from Chinese manufacturers, and concerns about infrastructure readiness.

Automakers argue that high upfront EV costs and patchy charging networks have slowed consumer adoption, making strict zero-emission mandates unrealistic. Supporters of the revision believe adding flexibility, such as recognizing synthetic fuels, biofuels, and hybrid technologies, could protect jobs and factories across Europe. Countries with strong combustion-engine sectors fear losing ground to cheaper Chinese EV imports if the transition is too sharp.

But not all EU members agree. Nations such as France, Spain, and the Nordic states want to maintain ambitious electrification goals to drive investment in battery and charging industries and avoid undermining climate credibility. Electric vehicle advocacy groups and clean-transport stakeholders warn that diluting targets could slow EV market growth and weaken Europe’s green leadership.

The Commission’s final proposal, expected after parliamentary review, will require approval from member states and the European Parliament. The outcome will influence industrial strategies, climate policy, and the pace of the continent’s shift away from fossil-fuel vehicles in the coming decade.