The European Union is set to rethink its landmark 2035 ban on new petrol and diesel cars, yielding to mounting pressure from major automakers and key member states, according to industry and EU sources.
The European Commission is expected to announce changes on Tuesday that could delay the ban by up to five years or soften it indefinitely. If confirmed, the move would mark the EU’s biggest retreat from its green transition policies in the past five years, News.Az reports, citing Reuters.
Germany and Italy, backed by Europe’s largest carmakers, have argued that the current targets are unrealistic as the industry struggles to compete with cheaper Chinese electric vehicles and U.S. rivals. Traditional manufacturers such as Volkswagen and Stellantis say electric vehicle demand has fallen short of expectations, while charging infrastructure remains uneven across the bloc.
Supporters of electric vehicles warn the shift could backfire. EV makers argue that weakening the ban risks slowing investment and handing China an even greater lead in electrification. “The technology is ready, infrastructure is coming, and consumers are prepared,” said Polestar CEO Michael Lohscheller. “Delaying now makes no sense.”
The 2023 law requires all new cars and vans sold in the EU from 2035 to be CO₂-emission free, with fines for automakers that miss interim targets. While the EU already gave manufacturers more flexibility on 2025 goals earlier this year, the industry is pushing for broader changes.
Automakers want to keep selling combustion engines alongside plug-in hybrids and vehicles running on e-fuels or advanced biofuels. Commission President Ursula von der Leyen has signaled openness to such alternatives, calling for a “technology-neutral” approach.
Environmental groups strongly oppose any rollback, arguing that biofuels are limited, costly, and not truly carbon-neutral. “Europe needs to stay the course on electric,” said Transport & Environment director William Todts. “Electric is clearly the future.”
The Commission is also expected to propose incentives for electric company cars and a new regulatory category for small EVs, aiming to boost adoption without imposing stricter mandates.
As the announcement approaches, the debate highlights a deep divide within Europe’s auto sector—between protecting industrial competitiveness today and committing fully to a zero-emissions future.
