A major policy shift is emerging in the EU as senior lawmakers say the 2035 ban on new petrol and diesel cars will be eased. The move has started a strong political debate, while campaign groups warn that it could slow the region’s clean transport push.
Pressure Builds to Adjust the 2035 Rule
The European Commission is expected to announce the change in Strasbourg next week. The planned move follows months of pressure from governments and the auto sector, which say the original rule is too strict for current market conditions.
The 2022 law required all new EU cars from 2035 to produce zero CO₂ emissions. This rule would have ended new sales of petrol, diesel, and hybrid cars. Manfred Weber, president of the European People’s Party group, said the strict requirement is now unlikely to stand. He told Bild that “the technology ban on combustion engines is off the table.”
Weber said the change would allow continued production and sale of engines already made in Europe. He also said the rule will shift to a 90% cut in fleet emissions rather than a full phase-out. This approach could keep plug-in hybrid cars on the market after 2035, although they would need improved electric driving ranges.
German chancellor Friedrich Merz said he supports the softer line. He argued that combustion engines will remain common around the world for decades. “There will still be millions of combustion engine-based cars around the world in 2035, 2040, and 2050,” he said.
Industry Support Meets Growing Pushback
Italy has also backed a change, as its government and carmakers want hybrid models to remain available. Several major European manufacturers, including Volkswagen, Stellantis, and Renault, say sales of electric cars have fallen short of what was expected when the rule passed.
These companies say the shift to full electric production needs more time and stronger market support. They argue that the ban could strain production lines and weaken Europe’s competitive position.
However, not all firms support the change. Volvo and Polestar say loosening the rule could create uncertainty and give more room to Chinese electric car makers. They warn that Europe may lose ground in a fast-growing global industry.
Environmental groups reacted with strong concern. Colin Walker from the Energy and Climate Intelligence Unit said the move would keep families driving “dirtier and more expensive petrol cars for longer.” Campaigners say hybrids still rely on fuel and often emit more than official tests suggest.
A European Commission spokesperson, Paula Pinho, said the 2035 rule is still under review. She added that Ursula von der Leyen has acknowledged calls for more flexibility. The Commission aims to produce a final text after hearing views from governments, lawmakers, and industry groups.
New Plans to Support European Electric Cars
The EU is also preparing a package to boost the production and sale of small electric cars made in Europe. This step is part of a wider effort to slow the rise of low-cost Chinese electric models in the EU.
The plan may use ideas from Japan, which supports compact electric cars with cheaper insurance and lower taxes. These small models have grown in popularity in Japan due to low running costs and easy parking.
Norway offers another example under review. It reached strong electric car adoption through tax breaks and toll discounts. More than 90% of new cars sold there in 2025 were electric. About 30% of cars on Norwegian roads are now electric, while the share in Italy is about 12%.
EU officials hope new incentives will attract buyers who want cheaper electric models but lack access to them. The Commission wants a plan that can support industry jobs and encourage faster charging network growth.
The debate is set to continue as EU leaders prepare for the Commission’s formal proposal. The decision will shape the region’s transport policy for many years while also influencing carmakers’ future investment plans.
