EU poised to water down 2035 ban on new diesel, gasoline cars
During the refueling process, a fuel nozzle is attached to the combustion engine at the gas pump at a filling station.
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The European Union on Tuesday is expected to ease its effective ban on the sale of new internal combustion engine cars from 2035, following lobbying by Germany, Italy and some auto industry groups.
Various media outlets have published reports in recent days about the proposal to soften the policy, with Manfred Weber, a senior member of the European Parliament (EP), telling Germany’s Bild newspaper late last week that the ban would be weakened.
Europe’s ban on the sale of new diesel and petrol cars and vans from 2035 has been hailed as a landmark policy in the EU’s flagship green deal when it is agreed in 2023. The agreement aims to eliminate CO2 emissions from cars and pickup trucks by that year.
Scaling it back up could provide more flexibility for the region’s original equipment manufacturers, which are already dealing with U.S. tariffs, supply chain disruptions, intense competition from China and a bumpy transition to electric vehicles.
Analysts questioned whether the move would do much to boost the region’s competitiveness in the long term, while campaigners criticized another possible rollback to the bloc’s climate targets.
A spokesperson for the European Commission, the EU’s executive arm, declined to comment when contacted by CNBC. A press conference will be held on Tuesday afternoon.
European Commission President Ursula von der Leyen delivers her speech during a debate on the new 2028-2034 Multiannual Financial Framework at the European Parliament in Brussels on November 12, 2025.
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Politics has come to the fore again in recent months; Some auto industry groups have called for a recalibration of the ban to boost Europe’s industrial competitiveness and preserve the strategic resilience of supply chains while maintaining climate targets.
“Flexibility is urgent,” said Sigrid de Vries, chief executive of the European Automobile Manufacturers Association (ACEA), an auto lobby group.
“2030 is approaching and market demand is too low to avoid the risk of multibillion-euro fines for producers,” De Vries said. in question A LinkedIn post on Monday described the widely anticipated announcement from the EU as “high noon for the automotive package.”
He added that it will take time to create the necessary charging infrastructure and put in place fiscal and purchasing incentives to get the market on track.
ACEA represents 16 major European-based automakers, including: volkswagen, bmw, FerrariAnd Renault.
‘A risky strategy’
But some car manufacturers producing electric vehicles have pushed the EU to “stick to” its 2035 target and back it up with bolder action.
One open letter In a report published in mid-September, more than 150 leaders of the region’s electric car industry said the introduction of the target had already triggered hundreds of billions of euros in new investment.
Signatories of the open letter included EV manufacturers Volvo and Polestar, as well as material suppliers, battery manufacturers and grid operators.
Rico Luman, senior industry economist for transport and logistics at Dutch bank ING, described the expected escalation in the EU’s internal combustion engine ban in 2035 as a “short-term choice” at a challenging time for the sector.
“Though pushing back on targets would also be a risky strategy in my view,” Luman told CNBC via email.
“It won’t help European industry in the long run, nor will it save jobs: The change is already happening, and the so-called competitive advantage of German (and European) manufacturers in internal combustion engines will be short-lived because it will be harder to keep up with Chinese rivals if the industry slows down,” he added.
