The European Union has softened its plan to completely end the sale of new petrol and diesel cars by 2035, giving carmakers more flexibility amid slower electric vehicle demand.
Earlier rules required that all new cars sold after 2035 must be zero-emission. However, under the updated proposal by the European Commission, only 90% of new vehicles will need to meet the zero-emission standard. The remaining 10% can include petrol, diesel, or hybrid models.
European car manufacturers, especially those based in Germany, had raised concerns that current electric vehicle sales are not strong enough to meet the original targets. Industry group ACEA warned that strict rules could have resulted in manufacturers facing heavy financial penalties worth billions of euros.
To balance emissions, the Commission plans to promote wider use of biofuels and synthetic e-fuels made from captured carbon dioxide. Carmakers will also be required to use low-carbon steel produced within the EU.
Environmental groups have criticised the move, arguing it could slow down Europe’s transition to electric mobility and weaken its position against global competitors. Green transport campaigners have urged the UK not to dilute its own zero-emission vehicle targets.
Industry leaders say the changes are necessary to protect jobs, innovation, and long-term investment while charging infrastructure and consumer incentives continue to develop.