- The EU is stepping back from a full ban on new ICE car sales in 2035
- A 90 percent CO2 reduction target is likely to replace the 100 percent requirement
- Hybrids, range extenders, and low carbon fuels will gain importance
- Full electrification remains the long term goal, now closer to 2040
For the past few years, the European Union’s plan to ban the sale of new internal combustion engine cars by 2035 has been treated as a fixed point on the automotive calendar.
Carmakers restructured product plans, suppliers reshaped investments, and governments aligned policy around the idea that pure electric vehicles would dominate European showrooms by the middle of the next decade. That certainty now looks far less solid.
According to reports first published by German newspaper Bild and subsequently picked up by Reuters, senior figures within the European Parliament are stepping back from the original 2035 ban.
Manfred Weber, president of the European People’s Party, confirmed that a full prohibition on new ICE vehicle sales is no longer the immediate goal. Instead, the EU is preparing to adopt a more flexible framework focused on emissions reduction rather than outright technology bans.
Under the revised thinking, carmakers would be required to achieve a 90 percent reduction in fleet CO2 emissions from 2035 onward, rather than the previously agreed 100 percent target. The ambition of eliminating tailpipe emissions entirely has not disappeared, but it has reportedly been pushed back to 2040.
Why the EU Is Changing Course
The shift reflects mounting pressure from Europe’s automotive industry and the governments that depend on it for jobs, exports, and tax revenue. Manufacturers including Volkswagen, Mercedes Benz, Stellantis, and Renault have been vocal in arguing that the original deadline was overly rigid and disconnected from real world market conditions.
While electric vehicle sales continue to grow, adoption remains uneven across regions and income groups. Infrastructure gaps, high purchase prices, and lingering concerns about charging and resale values have slowed mass market acceptance.
Forcing an abrupt transition risked alienating customers and destabilising an industry that employs millions across the continent.
Weber’s comments underline another concern that has become increasingly difficult for policymakers to ignore. Europe’s industrial competitiveness is under strain, particularly as Chinese EV manufacturers scale rapidly and undercut established brands on cost.
Allowing a longer transition window is seen as a way to protect tens of thousands of skilled manufacturing jobs while European firms adapt their technology and supply chains.
What This Means for Carmakers and Buyers
A softened emissions target does not mean business as usual for combustion engines. Hitting a 90 percent reduction will still require radical changes to vehicle lineups. Conventional petrol and diesel cars will struggle to survive unless paired with electrification in some form.
As a result, the industry is likely to double down on plug-in hybrids, range extender systems, and advanced combustion engines running on low-carbon fuels. Hybrid powertrains offer a pragmatic compromise, delivering lower emissions and strong efficiency while avoiding the full leap to battery electric for hesitant buyers.
There is also renewed interest in biofuels and synthetic e-fuels, particularly among premium brands. When produced using renewable electricity and captured CO2, these fuels can be certified as carbon neutral, allowing existing engines to meet future regulations without abandoning combustion entirely.
Porsche, which has invested heavily in e-fuel production, has already made clear that it sees a long-term role for such solutions.
Recent strategic reversals by major manufacturers reinforce this trend. Porsche’s decision to continue offering petrol and hybrid versions of future Macan and Cayenne models, alongside electric variants, reflects a broader recalibration across the sector.
Ford and others have similarly cooled earlier ambitions to go all-electric within fixed timeframes.
EVs Still Dominate the Long Term Picture
Despite the political U-turn, the direction of travel remains clear. Pure electric vehicles are still central to Europe’s long-term climate goals, and most manufacturers accept that full electrification is inevitable.
The revised timeline simply acknowledges that the transition will be messier and more gradual than originally planned.
Over the next 10 to 15 years, EVs will continue to gain market share as battery costs fall, charging networks improve, and second-hand markets mature.
At the same time, hybrids will play a crucial bridging role, helping manufacturers meet emissions targets while easing consumers into electrification.
The competitive landscape will also intensify. New entrants, particularly from China, are already exploiting their EV first approach and lack of legacy combustion costs.
European brands now face the challenge of managing a dual strategy, investing in electric platforms while extracting value from combustion technology for as long as regulations allow.
In short, the EU has not abandoned its climate ambitions, but it has accepted that flexibility matters. The era of the internal combustion engine may be drawing to a close, but it will fade out more slowly than many once expected.
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