EU Considers Softening 2035 Ban on New Petrol and Diesel Cars
The European Union's planned 2035 ban on selling new petrol and diesel cars is likely to be softened, according to senior MEP Manfred Weber. The initial strict technology ban on combustion engines appears off the table, allowing the continued production and sale of current German engines.
The European Commission's 2035 deadline remains under discussion, with President Ursula von der Leyen signaling a call for more flexibility on CO2 targets. Influential leaders including Germany's Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, along with several carmakers, have lobbied to permit continued sales of hybrid vehicles.
If the rule is amended, it would require a 90% reduction in CO2 emissions for new-car fleets from 2035 onward, rather than a complete 100% phase-out of combustion engines. However, automakers like Volvo and Polestar oppose this shift, arguing it could advantage Chinese competitors.
In parallel, the EU is expected to propose new measures to incentivize the production and purchase of European-made small electric vehicles (EVs). These proposals would draw on successful policies like Japan's kei-car style incentives and Norway's extensive tax exemptions. Norway's electric vehicle uptake is notably high: in 2025, more than 90% of new-car sales were electric, and about 30% of all cars on the road are electric. Italy's EV penetration remains around 12%.
This ongoing debate highlights the balance the EU seeks between ambitious climate goals and industrial and political realities across member states.
