EU revises 2035 ban on petrol and diesel cars

New proposal allows 10% of vehicles to use combustion engines, citing low EV demand and industry concerns.

The European Commission has scaled back its plan to ban sales of new petrol and diesel cars by 2035. Under the revised proposal, 90% of new cars sold from that date must be zero-emission, rather than 100%, leaving room for conventional and hybrid models.

The move follows lobbying from carmakers, particularly in Germany, who warned that current market demand for electric vehicles is too low to meet the original target without risking multi-billion-euro penalties. Industry group ACEA said more time is needed to expand charging infrastructure and introduce incentives.

The Commission expects manufacturers to use low-carbon steel and increase reliance on biofuels and e-fuels to offset emissions from combustion engines. Critics argue the change could slow Europe’s transition to e-mobility and weaken competitiveness.

Volvo warned that “weakening long-term commitments for short-term gain risks undermining Europe’s competitiveness,” while Volkswagen welcomed the flexibility, calling the proposal “economically sound overall.”

Automakers across Europe and the UK have invested heavily in EV production, but many say stable policy is essential to maintain confidence and secure jobs. “Policy makers must provide breathing space to manufacturers to sustain jobs, innovation and investments,” said ACEA’s director general Sigrid de Vries.

The debate underscores the challenge of balancing climate goals with market realities as global demand for electric vehicles accelerates.