Europe’s carmakers seek changes to ban on combustion-engine cars as EV sales lag

Europe’s carmakers are urging Brussels to reconsider the European Union’s planned 2035 ban on new combustion-engine cars, arguing that the transition to electric vehicles is progressing more slowly than expected.

The European Commission is due to present an auto sector package on Tuesday to support the industry, which faces high energy costs, US tariffs on exports and growing competition from Asian manufacturers.

On December 12, Manfred Weber, president of the European People’s Party, said the Commission would move to scrap plans for an effective ban on new combustion-engine cars from 2035.

The rule requiring all new cars sold from 2035 to have zero emissions was adopted in March 2023, when expectations for the growth of battery-electric vehicles were stronger. Carmakers now say those assumptions no longer hold.

Sales data show why. Battery-electric vehicle (BEV) registrations in Europe have risen steadily since 2020, reaching about 1.4 million units in 2024.

However, this growth has not compensated for a sharper fall in petrol and diesel car sales, which declined from around 7.5 million units in 2020 to below 5 million in 2024.

Hybrid and other electrified vehicles increased more rapidly, from approximately 1.9 million to over 4.4 million during the same period. Overall, car sales have therefore weakened despite the rise in electrification.

BEVs also remain a minority of sales at Europe’s largest automakers. In the first nine months of 2025, BEVs accounted for an EU average of 16% of total car sales. Most major manufacturers were below that level. Volkswagen’s BEV share was about 10.9%, Stellantis 11.1%, Renault 12.7% and Mercedes-Benz 8.8%.

BMW was closer to the average at around 18%. Porsche and Volvo Cars stood out, with BEV shares of about 23.1% and around 20% respectively.

These figures contrast with earlier targets. Volkswagen had planned six battery factories in Europe by 2030 and expected at least 70% of its European deliveries to be fully electric by then. It now plans three battery cell factories in Europe and North America with a lower maximum capacity and has dropped its firm EV sales targets.

Porsche once aimed for more than 80% fully electric deliveries by 2030, but no longer sets a specific target. BMW still targets 50% fully electric global sales by 2030, but says this depends on market conditions and expects its 2025 BEV share to stay around current levels.

Mercedes-Benz has moved away from a goal of 100% EV sales by 2030 and says it will keep combustion engines well into the 2030s. Renault shifted its target from 100% electric by 2030 to 2035. Stellantis has dropped its aim of selling only electric cars in Europe by 2030 and plans to review its strategy in 2026.

As the Commission prepares its package, carmakers are pushing for concessions. German manufacturers and the European Automobile Manufacturers’ Association want rules softened to allow alternatives to pure battery power.

The industry is asking Brussels to accept that CO2-neutral fuels, such as biofuels, as well as plug-in hybrids and range extenders, could continue to be used. Stellantis has warned that the sector risks an “irreversible decline” without policy support.

Automakers, including Volkswagen, argue that fixed phase-out dates no longer make sense and that the market should determine when combustion engines disappear. They are calling instead for incentives to stimulate demand for electric vehicles.

Demand for EVs in Europe is still increasing, but more slowly than expected. Industry data show BEVs made up about 16% of the market in the first 10 months of the year, up from 13% a year earlier.

(With input from agencies)