Brussels Considers Easing 2035 Ban on Thermal Engine Cars Under EU Auto Industry Pressure

The EU contemplates softening the 2035 ban on new thermal engine vehicles amid German industry concerns, allowing hybrid and alternative technologies to support Europe’s auto sector transition.

The European Commission is considering easing the planned 2035 ban on new sales of vehicles powered solely by thermal combustion engines. This potential policy shift comes in response to mounting pressure from Germany, whose automotive sector is grappling with the rapid transition to electric mobility and fierce Chinese competition. Stéphane Séjourné, Vice-President of the European Commission, indicated that certain thermal or hybrid technologies might be allowed beyond 2035 to offer clearer choices to consumers, especially in segments where electric vehicles still struggle to dominate. Official updates on this adjustment are expected on December 10, 2025.

Pressures on the European Automotive Industry

European car manufacturers, including giants like Volkswagen and Stellantis, face disappointing electric vehicle sales and an aggressive challenge from Chinese manufacturers such as BYD. The European Automobile Manufacturers’ Association reported that battery electric vehicles constituted only 16% of new car registrations in the first ten months of 2025 — far from the 100% electrification target set for 2035. Automakers are advocating for a more inclusive approach that recognizes alternatives, including range extenders, plug-in hybrids, and synthetic fuels, citing insufficient domestic demand and the need to remain competitive globally.

Volkswagen is expecting to cut 35,000 jobs by 2030 amid industry restructuring.
Stellantis and Renault executives have called the 2035 goal unrealistic without flexibilities.
Some 150 companies, including Volvo and battery manufacturers, urge the EU to maintain the ban timeline.

France Holds Firm on 2035 Deadline

Contrasting the German push for leniency, France remains committed to the original 2035 target. President Emmanuel Macron reaffirmed that this goal aligns all stakeholders towards a unified vision for clean mobility. This position illustrates diverging national stances within the EU, reflecting varying economic and industrial priorities in the race to electrify road transport.

Implications for Consumers and Industry

Easing the ban on thermal engines post-2035 would mark a significant strategic recalibration in Europe’s green transition plan. This approach aims to:

Provide consumers with a wider range of vehicle technologies.
Support industry competitiveness during a challenging transformation period.
Address production and supply challenges in battery electric vehicles.
Navigate geopolitical factors affecting raw materials and market demand.

While the push for sustainability remains a priority, the European automotive sector’s future regulation is now poised to be more nuanced, balancing environmental ambitions with economic realities.