The European Union will soften its 2035 ban on new petrol and diesel cars, allowing plug-in hybrids to continue beyond the deadline, a senior MEP confirmed Friday.

Why it matters: The reversal guts Europe’s flagship climate policy just as Chinese competitors flood the continent with affordable EVs.

The Details

Manfred Weber, president of the European People’s Party, told Germany’s Bild newspaper that the European Commission will announce the changes Tuesday in Strasbourg.
“The technology ban on combustion engines is off the table,” Weber stated. “All engines currently manufactured in Germany can therefore continue to be produced and sold.”
German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni have lobbied for months to weaken the ban, citing struggling automakers and slower-than-expected EV demand.
Environmental groups slammed the decision. Colin Walker of the Energy and Climate Intelligence Unit said it would “keep millions of European families stuck driving dirtier and more expensive petrol cars for longer.”
Some automakers, including Volvo and Polestar, oppose the rollback, warning it hands an advantage to Chinese rivals.

By The Numbers

Original CO2 Target (2035): 100% reduction (zero emissions)
New CO2 Target (2035): 90% reduction
Hybrid Range Allowance: 373+ miles (600+ km) with combustion backup
Norway EV Market Share (2025): 90% of new car sales
Italy EV Market Share (2025): 12% of new car sales
EU BEV Market Share (Jan-Oct 2025): 16.4%

EVXL’s Take

This decision confirms what we warned about two weeks ago: European automakers are treating the symptom, not the disease. The real crisis is not regulatory pressure. It is competitive collapse. While Brussels debates loosening rules, BYD is doubling its European dealer network to 2,000 locations by 2026 and building tariff-proof factories in Hungary and Turkey.

Softening the 2035 target will not solve the development speed gap where Chinese competitors launch new models in 18 months versus Volkswagen’s five years. It simply gives European automakers permission to retreat to profitable hybrids while Chinese brands capture market share. When Germany sent its formal letter to Brussels demanding this rollback, we called it damage control disguised as industrial policy. Tuesday’s announcement proves us right.

Frequently Asked Questions

When does the EU’s new policy take effect? The European Commission is expected to announce details Tuesday, December 16, in Strasbourg.
Can I still buy a petrol car after 2035? Under the revised rules, plug-in hybrids with extended electric range will remain available. Pure combustion vehicles face stricter limits.
Which automakers support weakening the ban? German automakers, the European Automobile Manufacturers’ Association, and governments in Germany and Italy. Volvo and Polestar oppose it.