Auto Industry Urges EU to Rethink 2035 Combustion-Engine Ban

A growing chorus of traditional carmakers is calling on the European Union to reconsider its 2035 plan to ban sales of new petrol- and diesel-powered cars, arguing the target is too rigid and risks destabilizing the industry.

Why Carmakers Are Pushing Back

The European Automobile Manufacturers’ Association (ACEA) recently submitted a proposal to the European Commission asking for more “flexibility” around the 2035 goal. They argue that the current plan assumes overly optimistic market conditions.
Key demands include:
Recognizing carbon-neutral “e-fuels” so some combustion-engine cars can still be sold after 2035.
Offering additional credits for automakers that sell smaller EVs.
Easing fines or penalties for manufacturers who fail to meet emissions targets.

These automakers cite increasing competition from China, high energy costs, and faltering demand for EVs as serious obstacles to the EU’s aggressive emissions roadmap.

Voices from Within the Industry

Germany’s automotive lobby group (VDA) has called for a “de facto reversal” of the 2035 ban, suggesting that a limited number of low-emission combustion cars should still be allowed.
BMW CEO Oliver Zipse described the ban as a “big mistake,” warning it could weaken Europe’s auto industry and increase dependence on Chinese battery imports. He proposes that emissions rules should also target fuel producers—not just carmakers.
Meanwhile, over 150 electric and clean-tech companies (including Volvo, Polestar, Uber, and IKEA) are urging the EU not to rollback the 2035 target, saying it’s crucial for long-term investment certainty.

What’s Changing Now

In May 2025, the Council of the EU adopted a temporary change to its CO₂ regulation: automakers can now average their emissions over 2025–2027 instead of meeting strict annual limits.
This amendment is part of the EU’s broader Industrial Action Plan to support car manufacturers during the energy transition.
At the same time, upcoming policy reviews could reopen debate on whether the 2035 zero-emission target should be adjusted or made more flexible.

Implications

If the EU eases its 2035 mandate, it could preserve some traditional auto-industry jobs and ease the financial strain on legacy manufacturers.
However, weakening the target risks undermining climate goals, potentially slowing the transition to electric vehicles and reducing long-term investment in EV technology.
The debate reflects a deeper tension: how to balance industrial competitiveness with environmental ambition — and whether a “one-size-fits-all” 2035 deadline is realistic for all automakers.