The European Union is moving to ease or delay its planned ban on new petrol and diesel cars from 2035, after sustained opposition from major automakers and powerful industry lobbies in Germany and Italy.
The European Commission will present a proposal on Tuesday to revise the policy adopted in 2023. Industry sources and EU officials told Reuters that the Commission may either delay the ban by five years or soften carbon-emission targets indefinitely.
The original rule effectively ends sales of new carbon dioxide-emitting passenger cars and vans after 2035. However, political resistance has intensified as economic pressures mount across the bloc.
Last week, Manfred Weber, leader of the European People’s Party—the largest group in the European Parliament—declared the combustion-engine debate effectively closed.
“We are delivering on technological neutrality,” Weber said, adding that the EU must combine climate goals with industrial competitiveness. He described the ban as a serious policy mistake and confirmed that the Commission would advance a proposal to scrap it.
Germany, Italy Push Back as Auto Sector Struggles
Germany and Italy have led the campaign to revise the policy. Both governments want the EU to allow plug-in hybrids and highly efficient combustion vehicles beyond 2035.
They argue that the ban threatens jobs, weakens manufacturing capacity, and undermines Europe’s industrial base. Their concerns come as the auto sector faces overlapping challenges.
European carmakers are grappling with U.S. trade tariffs, Chinese restrictions on rare-earth exports, and falling domestic demand. At the same time, cheaper electric vehicles from China continue to erode market share.
These pressures have sharpened calls for policy flexibility, especially in countries with large automotive workforces.
Industry Warnings Resurface Ahead of Decision
Automakers have warned about the risks before. In 2024, BMW said banning petrol and diesel cars from 2035 was no longer realistic.
The company cautioned that such a move could trigger a major contraction of Europe’s auto industry. Other manufacturers echoed similar concerns privately.
If the Commission proceeds with the change, it would mark one of the EU’s most significant industrial policy reversals in recent years. The shift would also highlight the growing tension between climate ambition and economic resilience.