EU Softens Plan to End New Petrol and Diesel Car Sales by 2035
The European Commission has scaled back its proposal to phase out the sale of new petrol and diesel cars by 2035, easing pressure on carmakers after sustained lobbying from the industry.
Under existing rules, all new cars sold in the EU from 2035 were expected to be zero-emission. However, the Commission’s revised plan would require 90% of new vehicle sales to meet that standard, rather than 100%. The remaining 10% could include petrol, diesel and hybrid vehicles.
The change follows concerns raised by manufacturers, particularly in Germany, that demand for electric vehicles remains too weak. The European Automobile Manufacturers’ Association (ACEA) has warned that sticking rigidly to the original target could expose companies to penalties running into billions of euros.
Alongside the adjustment to sales targets, the Commission says carmakers will be required to use low-carbon steel produced within the EU. It also expects greater reliance on biofuels and so-called e-fuels, which are created using captured carbon dioxide, to help offset the additional emissions from combustion-engine vehicles that remain on the market.
Critics argue the shift risks slowing the transition to electric mobility and weakening Europe’s competitive position against overseas rivals. Green transport campaign group Transport & Environment (T&E) said the move could undermine progress and warned the UK against following a similar path.
“The UK must stand firm,” said T&E UK director Anna Krajinska, adding that the country’s zero-emission vehicle mandate is already supporting jobs, investment and innovation as global markets move rapidly towards electric vehicles.
Before the Commission’s announcement, ACEA director general Sigrid de Vries had called for greater flexibility, saying manufacturers face mounting pressure as 2030 approaches. She argued that more time is needed to expand charging infrastructure and introduce incentives that would encourage consumers to switch to electric cars.
The revised EU stance has reignited debate in the UK, where carmakers have previously urged the government to improve incentives ahead of its planned 2030 ban on new petrol and diesel vehicles. Companies worldwide have invested heavily in retooling factories and developing electric models as governments tighten emissions rules.
Volvo said it remains committed to a fully electric future, noting it has built a complete EV range in less than a decade. The carmaker warned that weakening long-term targets for short-term relief could harm Europe’s competitiveness.
By contrast, Volkswagen welcomed the Commission’s draft proposal, describing it as economically realistic. The company said allowing a limited number of combustion-engine vehicles while compensating for emissions better reflects current market conditions.
Policy experts have also weighed in on the potential knock-on effects. Colin Walker of the Energy and Climate Intelligence Unit said stable UK policy would give businesses confidence to continue investing in charging infrastructure and manufacturing capacity. Octopus Electric Vehicles chief executive Fiona Howarth added that any retreat from existing targets could send a negative signal to investors who have already committed significant resources to the transition.
The Commission’s proposal will now be debated by EU member states and lawmakers, with the final shape of the rules likely to play a major role in determining how quickly Europe’s car industry moves away from petrol and diesel power.
