EU Electric Car Ban 2035 Rule Change and Industry Impact

EU electric car ban 2035 eased to 90% zero-emission vehicles, balancing industry flexibility with climate goals.

The European Commission has revised its plans to phase out petrol and diesel cars by 2035. Instead of a full ban on new conventional vehicles, the updated proposal requires 90% of new cars sold by 2035 to be zero-emission, leaving room for a small share of petrol, diesel, and hybrid vehicles.

This change follows heavy lobbying by carmakers, especially in Germany, who warned that low electric car demand could lead to massive financial penalties if the previous strict rules remained. To offset emissions from remaining fossil-fuel cars, the Commission also encourages biofuels, e-fuels, and low-carbon steel for vehicle production.

Critics argue that the move could slow down Europe’s electric vehicle (EV) transition and weaken its competitiveness against global markets. UK green transport groups, like T&E, urged the country to maintain strong zero-emission targets to boost innovation, jobs, and investment.

Carmakers, however, welcome the flexibility. Volkswagen called the draft “economically sound,” noting that adjusted CO₂ targets and support for small EVs reflect market realities. Volvo emphasized that strong, consistent policies and public infrastructure investments are key to sustaining Europe’s industrial strength.

Experts highlight that stable policies give investors confidence. The UK, for instance, secured Nissan EV production in Sunderland thanks to consistent incentives, protecting jobs and boosting EV adoption. Weakening targets now could send the wrong signal to manufacturers and supply chains.