European officials have confirmed a significant policy pivot: the EU will replace its planned 2035 ban on new petrol and diesel car sales with a more flexible 90% emissions reduction target. This adjustment permits advanced hybrids and alternative fuels beyond the original deadline.

The European Commission is set to formally announce the change on December 16 during a Strasbourg session, as stated by Manfred Weber, president of the European People's Party—the largest group in the European Parliament. Speaking at a Heidelberg press conference alongside German Chancellor Friedrich Merz, Weber noted: "Next Tuesday, the European Commission will put forward a clear proposal to abolish the ban on combustion engines."

Strong Push from Automakers and Key Member States

This reversal represents a major win for Germany, Italy, and several other EU nations that lobbied against the rigid 2035 cutoff. Critics argued it endangered hundreds of thousands of automotive jobs, especially amid intensifying competition from Chinese manufacturers. A coalition of seven member states—Germany, Italy, Poland, Bulgaria, the Czech Republic, Hungary, and Slovakia—urged the Commission to eliminate the prohibition entirely.

Leading automakers, including Volkswagen, Mercedes-Benz, BMW, Renault, and Stellantis, have welcomed the added flexibility. They point to sluggish consumer demand for electric vehicles (EVs) since the 2035 target was set in 2022. Markus Haupt, CEO of Volkswagen's SEAT subsidiary, told Reuters: "A postponement of this ban could help us manage the transition until EVs comprise nearly 100% of the market."

Divided Industry Reactions and Environmental Backlash

The policy shift has split the automotive industry. Swedish firms Volvo and Polestar decried the rollback, cautioning it would hinder electrification efforts and cede ground to Chinese rivals. Polestar CEO Michael Lohscheller told The Guardian: "Pushing back 2035 is a bad, bad idea—the Chinese will not pause their EV push."

Environmental groups have also voiced strong opposition, labeling the move a setback for the EU's Green Deal. Colin Walker of the Energy and Climate Intelligence Unit warned it would leave "millions of families stuck in dirtier and more expensive petrol cars for longer." Spain's Prime Minister Pedro Sánchez called on the Commission to uphold the original ban, while Chancellor Merz defended the revision as essential for "technological openness" and providing industry with "real planning security."

UK Sticks to Ambitious Timeline Amid Potential Supply Chain Risks

In contrast, the UK government reaffirmed its stricter schedule on Friday: a phase-out of new petrol and diesel cars by 2030, with all non-zero-emission vehicles banned by 2035. A Department for Transport spokesperson emphasized: "We remain committed to phasing out all new non-zero-emission car and van sales by 2035."

Analysts warn this policy divergence could disrupt deeply integrated UK-EU automotive supply chains.

This development underscores the ongoing tension between environmental ambitions, industrial realities, and global competition. Stay tuned for the Commission's official announcement.