European Carmakers Want Reprieve from 2035 ICE Ban
By Reuters | 26 Nov, 2025

Facing slower-than-anticipated EV adoption and strong competition from Chinese EVs, Europes leading carmakers are hoping that Brussels will delay the 2035 date set for a ban on internal-combustion-engine vehicles.

Europe's embattled carmakers are hoping for a reprieve when Brussels unveils an auto sector package next month, which could water down an effective ban on new combustion engines initially slated for 2035 as a shift towards electric engines stutters. 

The continent's automakers from Volkswagen to Renault had high hopes for the electric vehicle shift when they set ambitious targets at the beginning of the decade, efforts that have since collided with the reality of lower-than-expected demand and fierce competition from China.

WHAT IS EXPECTED ON DECEMBER 10?

Brussels is set to unveil measures designed to support the regional auto industry, one of the EU's most important sectors, in the face of high energy costs, tariffs on exports to the U.S., and Asian rivals eating into the bloc's market.

German automakers and the European Automobile Manufacturers' Association have called for a weakening of rules designed to boost battery or fuel-cell electric drive cars, while Fiat-to-Maserati owner Stellantis warned the industry risks an "irreversible decline" without help.

The regulation that all new vehicles from 2035 should have zero emissions was adopted in March 2023 when the outlook for battery electric vehicles was brighter.

The industry is now pushing for concessions. It hopes the European Commission will accept that CO2-neutral fuels, such as biofuels, could continue to power internal combustion engines, as well as plug-in hybrids or range extenders.

Automakers including Europe's biggest Volkswagen have argued that immovable targets no longer make sense, and that the market, rather than legislators, should decide when combustion engines are fully phased out. They favour instead incentives to boost demand for electric vehicles.

WHERE DID IT ALL GO WRONG?

Demand is rising for EVs in Europe, but not at the pace carmakers had once planned for, with ACEA's data showing a market share of 16% for battery electric vehicles in the first 10 months of the year, up from 13% a year previously.

Charging anxiety remains an issue for consumers, with central and eastern Europe behind on infrastructure, while high electricity costs are a concern in Germany.

(Reporting by Christoph Steitz and Ilona Wissenbach in Frankfurt, Christina Amann and Rachel More in Berlin, Gilles Guillaume in Paris, Giulio Piovaccari in Milan and Philip Blenkinsop in Brussels; Editing by Jan Harvey)