The European Union is set to abandon its plan to ban the sale of new petrol and diesel cars by 2035, as part of a package of reforms aimed at supporting the continent’s struggling automotive industry. The proposed replacement is a less ambitious 90% emission-reduction target, which has sparked concerns among environmentalists that it may undermine the EU’s green agenda and deter investments in electrification.
The EU’s automotive industry has been facing significant challenges, including fierce competition from China and a slower-than-expected shift to electric vehicles. Carmakers have been lobbying hard for the EU to relax the ban, citing high upfront costs and inadequate charging infrastructure as major obstacles to the adoption of electric vehicles. According to the European Automobile Manufacturers Association (ACEA), only 16% of new vehicles sold in the first nine months of 2025 were electric.
The European Commission is expected to propose the new measures on Tuesday, which will include allowing the sale of hybrid vehicles with rechargeable batteries or range extenders after 2035. This move has been supported by countries such as Germany and Italy, but has been met with opposition from France, the Nordic countries, and Spain, which have invested heavily in the transition to electric vehicles.
Environmentalists have expressed concerns that the new proposal may not go far enough to reduce emissions, with some arguing that plug-in hybrids pollute almost as much as petrol cars. However, others believe that the compromise may help to move the industry forward and reduce confusion among consumers. The EU’s transport sector accounts for around 20% of the continent’s greenhouse gas emissions, with 61% of those coming from cars.
The European Commission is also expected to announce additional measures to support the automotive industry, including plans to “green” company fleets and encourage the production of small and affordable electric vehicles. The EU has set a goal of reducing its greenhouse gas emissions by at least 55% by 2030, and the transport sector will play a critical role in achieving this target. The proposed reforms will be closely watched by industry leaders, environmentalists, and consumers, as the EU seeks to balance its commitment to reducing emissions with the need to support its struggling automotive industry.
