The European Commission is to reconsider the previously set 2035 deadline for banning the sale of cars with combustion engines. The commission wanted to consider this in 2026, but is bringing this decision forward.
This reports Reuters based on sources. The European Commission announced in 2022 that it would ban the sale of combustion-engine cars within the European Union (EU) by 2035. In practice, this means that only vehicles with a different powertrain such as an electric- or hydrogen-based drive will still be allowed to be sold.
Much criticism
The measure received a lot of criticism, including from car manufacturers. For instance, carmakers have seen demand for electric vehicles decline and fall short of forecasts for some time. For instance, about 8.5% of all vans sold are electric, while the figure for passenger cars is about double.
Bad news for car manufacturers. They previously invested billions of euros in developing electric vehicles (EVs). Due to falling demand, they are struggling to recoup this investment.
Strong competition
At the same time, carmakers are facing strong competition from China in particular. Many Chinese carmakers offer EVs at prices lower than those of European competitors. As a result, many European manufacturers struggle to compete with these brands. In addition, carmakers are harmed by US import tariffs, affecting their position in the US market.
As a result, many car manufacturers now argue that banning the sale of cars with combustion engines by 2035 is no longer feasible.
Rescue plan
Earlier, the European Commission came up with a rescue plan for the European automotive industry. It wants to put billions of euros into supporting the sector. The money is intended, among other things, to boost innovation and obtain raw materials to produce batteries for electric vehicles (EVs) within the EU.
The European Commission is freeing up a total of €1.8 billion to make raw materials available for battery production. The European Commission also wants to make €1 billion available for innovation within the European automotive sector in 2027, in cooperation with partners. Demand for EVs is also to be boosted through the rescue plan.
Alternative rules considered
So now the elimination of the sale of cars with internal combustion engines may also kick off. Abandoning 2035 as a deadline may help carmakers, as it will allow them to continue to focus on selling cars that are in greater demand in the coming years.
The European Commission is reportedly considering alternative rules to encourage the embrace of EVs. These would include considering a separate vehicle class for small electric vehicles. Among other things, this class could benefit from more favourable tax rates and also provide additional CO2 credits, which should help carmakers meet targets around CO2 emissions.
Encouraging local production
The European Commission also wants to encourage local production of components such as battery packs, according to Reuters. It would also work on conditions for investment from foreign manufacturers and suppliers, with a focus on China.
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