EU Softens 2035 Deadline for Ending Petrol and Diesel Car Sales

Shift in Policy Reflects Industry Pressure

The European Union has adjusted its long term plan to phase out new petrol and diesel vehicles, easing a previously strict requirement that all new cars sold from 2035 must produce zero emissions. The European Commission’s revised approach comes after sustained lobbying from carmakers, particularly those based in Germany, who have warned that the original rules could place severe financial strain on the industry. The policy change reflects growing concern that the pace of the transition toward electric vehicles may be out of step with market realities.

What the New Proposal Changes

Under the updated plan, 90 percent of new vehicles sold in the EU from 2035 would be required to meet zero emission standards, rather than the full 100 percent originally proposed. While the majority of new cars would still need to be electric or otherwise emissions free, the revised threshold introduces limited flexibility for manufacturers. This adjustment allows a small portion of sales to continue using alternative technologies, potentially including vehicles running on synthetic fuels or other low carbon solutions.

Carmakers Warn of Market Constraints

European carmakers have argued that the original policy underestimated the challenges of consumer adoption. According to the European Automobile Manufacturers’ Association, known as ACEA, demand for electric vehicles remains weaker than policymakers anticipated in several key markets. High vehicle prices, uneven charging infrastructure, and concerns about driving range have slowed uptake. Without regulatory flexibility, ACEA warned that manufacturers could face multibillion euro penalties for failing to meet sales targets.

Germany’s Influence on the Debate

Germany’s powerful automotive sector has played a central role in shaping the discussion. As home to some of the world’s largest car brands, Germany has pushed for a more pragmatic transition that protects jobs and industrial competitiveness. German manufacturers have invested heavily in electrification but have also advocated for technological neutrality, arguing that multiple solutions should be allowed to coexist during the transition away from fossil fuels.

Balancing Climate Goals and Economic Reality

The European Commission has stressed that the revised proposal does not weaken the EU’s commitment to reducing emissions. Instead, officials argue it acknowledges the economic and technological constraints facing the automotive sector. Transport remains a major source of carbon emissions in Europe, and the shift to cleaner vehicles is still seen as essential to meeting climate targets. However, policymakers are increasingly focused on ensuring that regulations remain achievable and do not destabilize a critical industry.

Implications for Consumers and Innovation

For consumers, the policy shift could mean a more gradual transition in vehicle options rather than an abrupt end to combustion engine sales. Automakers may have greater room to manage production changes and invest in charging networks, battery technology, and alternative fuels. Supporters of the adjustment say this flexibility could ultimately lead to broader adoption of clean vehicles by aligning supply more closely with consumer readiness.

Critics Raise Environmental Concerns

Environmental groups have criticized the watered down proposal, arguing that any retreat from a full zero emission mandate risks slowing progress toward climate goals. They warn that allowing exceptions could weaken investment signals and delay the shift away from fossil fuels. For these critics, clear and firm targets are necessary to drive innovation and accelerate infrastructure development.

A Compromise in a Complex Transition

The revised 2035 plan highlights the complexity of transforming Europe’s automotive sector. The EU remains committed to decarbonization, but the adjustment signals a willingness to compromise as economic pressures mount. The debate underscores the challenge of balancing environmental ambition with industrial resilience in one of Europe’s most influential sectors.