The European Commission (EC), the politically independent executive arm of the European Union (EU), is reportedly considering scrapping its plan to ban the sale of new internal combustion engine (ICE) cars by 2035, according to Reuters. The move comes amid mounting pressure on Europe’s carmakers, who are facing intensifying competition from Chinese electric vehicle (EV) manufacturers and an increasingly challenging global trade environment.
The proposed ICE ban was a cornerstone of the EU’s broader decarbonisation strategy, aimed at accelerating EV adoption and reducing transport-related emissions across the continent. However, several carmakers – particularly Germany’s legacy brands – have since voiced concerns over their ability to compete with lower-cost Chinese EVs, while also contending with import tariffs and shifting demand in key overseas markets such as the United States.
During a press conference in Germany, European People’s Party (EPP) president, Manfred Weber, said it should be left to markets and consumers to decide how climate targets are achieved. This stance is echoed by brands such as Mercedes-Benz and BMW, both of which have been more reserved on the full transition to EVs.
According to the report, an alternative proposal is now being prepared that would require carmakers to cut vehicle emissions by 90% from 2035, instead of enforcing a complete ban on ICE vehicles. Weber added that there would also be no move towards a 100% zero-emissions target from 2040 onwards. While the EC has yet to confirm any details, an official announcement on the proposal is expected on 16 December.
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That being said, brands like Volvo Cars aren’t so much in favour as they have already invested heavily in the EV transition, and any reversal now is taken as a “betrayal”. Volvo Cars Chief Commercial Officer Erik Severinson told Reuters that the company is on track to follow through with the EV-only mandate. Any changes to the regulations will negatively impact confidence for similar situations in the future.
Environmental groups and policy analysts have also raised concerns. Speaking to The Guardian, Energy and Climate Intelligence Unit head of transport, Colin Walker, said that if the changes are confirmed, they would “keep millions of European families stuck driving dirtier and more expensive petrol cars for longer.” He added that allowing hybrid vehicles to remain on sale would only delay the transition to fully electric mobility.
German Chancellor Friedrich Merz, who was also at the press conference, said electric vehicles remained the main path to carbon neutrality, but there are also other technologies, such as synthetic fuels. Adding, “That is precisely what we mean by technological openness. This now gives the industry real planning security.”
If implemented, the revised policy would allow internal combustion vehicles to remain on sale beyond 2035, while shifting the focus towards cleaner combustion technologies such as e-fuels and hydrogen. A 90% emissions reduction target could also give legacy carmakers greater flexibility to transition at a more measured pace, rather than being bound by a strict EV-only mandate.
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