EU Commission set to scrap 2035 ban on new petrol and diesel cars

The European Commission has decided to scrap the 2035 EU ban on new petrol and diesel cars to support Europe’s auto industry.

Carmakers have lobbied hard for Brussels to relax the ban over the year after facing the shift to electric vehicles (EVs).

Under the deal, which is still being negotiated at the time of publication, automakers can sell plug-in hybrids and range extenders after 2035.

A proposal is expected to come out from the Commission with a 90% emission-reduction target. This was criticised as risking undermining the EU’s green agenda.

"This is a critical milestone for the future of the sector. There is a lot at stake," Sigrid de Vries, the head of European auto lobby ACEA, said in a press conference in Brussels on Monday.

Just over 16% of new vehicles sold in the first nine months of 2025 run on batteries, according to ACEA.

Set in 2023, the ban was a cornerstone of the EU's environmental Green Deal, which has come under increased pressure from businesses and right-wing politicians as the EU seeks to bolster its industry.

The auto industry argued that the law banning the new sale of CO2-emitting vehicles puts them at a disadvantage to compete against Chinese electric vehicle carmakers.

EU governments, including Germany and Italy, and several automakers have been lobbying for softer regulation, which currently sets a goal to cut carbon emissions from new cars to zero by 2035, effectively banning sales of new combustion-engine vehicles.

However, France, the Nordic countries and Spain have called to keep to the planned ban in order not to harm firms that have invested in the transition to electric vehicles.

Volkswagen, Stellantis, Renault, Mercedes-Benz, and BMW, have all argued in favour of dropping the ban, instead letting customers decide what they want rather than having firm targets.

Road transport accounts for about 20% of total planet-warming emissions in Europe, and 61% of those come from cars' exhaust pipes, according to the EU.