As the European Commission prepares to unveil a support package, automakers lobby for a more flexible approach to the 2035 ICE ban, citing technological, economic, and market challenges that threaten industry competitiveness and jobs.
European automakers are pressing the European Commission to reconsider and ease the regulatory pressures associated with the planned 2035 phaseout of new internal combustion engine (ICE) vehicles, as the Commission prepares to unveil a comprehensive automotive support package on December 10. This move comes amid growing concerns across the industry about the pace and practicality of the transition to electric vehicles (EVs), given current market conditions and economic challenges.
The 2035 ban on new carbon dioxide-emitting vehicles was adopted in March 2023, reflecting strong optimism at the time about EV adoption. However, manufacturers such as Volkswagen, Renault, and Stellantis have since argued that the transition is not progressing as rapidly as forecast. Industry data from the European Automobile Manufacturers’ Association (ACEA) shows that battery electric vehicles (BEVs) accounted for around 16% of the European market during the first ten months of 2025, up modestly from 13% the previous year but still short of the levels necessary to meet EU emissions targets. Hybrid vehicles, especially plug-in hybrids (PHEVs), continue to dominate consumer preferences, representing roughly 34.6% of registrations, underscoring ongoing reliance on combustion-based technologies.
Industry leaders highlight several market realities behind this slower uptake. Consumer hesitations about EVs largely hinge on concerns over charging infrastructure, which remains uneven across the bloc, particularly in central and eastern Europe, and the burden of high electricity prices, notably in Germany. Moreover, the sector grapples with broader economic challenges, including high energy costs, trade frictions with the United States, and fierce competition from Chinese manufacturers who are aggressively expanding their footprint in the European market. Notably, Chinese EV makers like BYD and SAIC Motor have posted strong sales growth in Europe, intensifying competitive pressures on domestic producers.
German Chancellor Friedrich Merz has emerged as a prominent advocate for regulatory flexibility. Speaking in late November 2025, Merz announced plans to formally ask the European Commission to review the 2035 combustion engine ban, arguing that the deadline is unrealistic under current industrial conditions. He underlined the importance of technological flexibility that would allow plug-in hybrids and highly efficient combustion engines to remain part of the transition, emphasizing the need to preserve jobs in Germany’s vital auto industry. Simultaneously, the German government has introduced subsidies aimed at making EVs and hybrids more affordable for lower-income households, highlighting a blended approach balancing environmental goals with economic realities.
European carmakers and industry groups like ACEA have echoed calls for concessions that would permit continued use of CO2-neutral fuels such as advanced biofuels, alongside a sustained role for plug-in hybrids and range-extender technologies. Volkswagen has been among the voices advocating incentives designed to stimulate EV demand rather than adhering strictly to rigid bans on ICE vehicles. Stellantis has warned that without such policy adjustments, the EU’s automotive sector risks an “irreversible decline,” reflecting fears of deindustrialisation and loss of competitiveness.
The upcoming December 10 package from the European Commission is expected to include a suite of support measures for the automotive industry, which is keen to see a more nuanced regulatory framework that considers market and technological developments. For instance, Renault’s CEO has expressed support for EU-wide rules prioritising local sourcing of components to counter Chinese competition but has urged flexibility in defining local content thresholds to avoid overly complex and impractical compliance demands.
Market data reveals a mixed picture of progress and challenge. While overall car registrations in Europe have shown some growth, up 1.4% year-to-date by October 2025, volumes remain below pre-pandemic levels. The adoption of battery electric vehicles is increasing but not at the robust pace originally anticipated, with hybrid vehicles continuing to capture the largest share. European car sales rose by nearly 5% in October 2025, propelled mainly by gains in electrified vehicles, yet the market is also experiencing varied performances across brands and segments, as illustrated by Tesla’s significant sales decline contrasted with Chinese manufacturers’ substantial gains.
The sector’s ongoing challenges highlight the complexity of Europe’s industrial decarbonisation pathway. Achieving climate goals while maintaining competitiveness and employment requires a multi-faceted strategy. Many industry stakeholders advocate that flexible technology approaches, targeted incentives, investments in charging infrastructure, and pragmatic regulatory timelines will better support the transition.
In summary, as Brussels prepares to present its automotive support package, European carmakers are seeking a recalibration of the 2035 combustion engine phaseout. They are calling for policies that reflect current market realities, enable technological diversity, and sustain the competitiveness of the European auto industry in a rapidly evolving global landscape. How the Commission balances environmental imperatives with economic and industrial considerations in its forthcoming proposals will be closely watched across the sector.
- https://evmagz.com/eu-carmakers-look-to-brussels-for-relief-as-2035-combustion-engine-phaseout-faces-review/ – Please view link – unable to able to access data
- https://www.reuters.com/sustainability/climate-energy/merz-ask-eu-drop-hard-cut-off-combustion-cars-2035-2025-11-28/ – On November 28, 2025, German Chancellor Friedrich Merz announced plans to formally request the European Commission to reconsider its ban on the sale of new carbon dioxide-emitting vehicles set for 2035. Merz, aligning with Germany’s influential automotive sector, argued that the timeline is unrealistic given current industrial conditions and emphasized the need for technological flexibility, including exemptions for plug-in hybrids and highly efficient combustion engines. Despite reaffirming Germany’s commitment to climate goals, he stressed the importance of preserving jobs in the German auto industry. As part of a compromise within the coalition government, Merz unveiled a subsidy program to support lower-income households in purchasing electric or hybrid vehicles, offering a basic €3,000 subsidy plus €500 per child. The policy move met criticism from climate advocates like Transport & Environment, who accused Germany of resisting necessary innovation by clinging to combustion engine technology. The EU Commission is expected to present a broader plan to support the European automotive sector on December 10.
- https://www.reuters.com/sustainability/climate-energy/boards-policy-regulation/european-carmakers-hope-reprieve-2035-combustion-engine-ban-2025-11-26/ – European carmakers are seeking leniency from the European Union regarding the planned 2035 ban on new combustion engine vehicles, a regulation adopted in March 2023 amid optimism for electric vehicle (EV) adoption. However, that optimism has waned due to slower-than-expected EV demand, consumer concerns such as charging infrastructure and energy costs, and increased competition from Chinese manufacturers. As the EU prepares to unveil an automotive support package on December 10, automakers such as Volkswagen and Renault are urging the inclusion of exceptions—proposing that CO2-neutral fuels like biofuels be allowed for internal combustion engines, and advocating more flexibility for hybrid technologies. Industry leaders and groups such as the European Automobile Manufacturers’ Association argue that market conditions, not policy mandates, should dictate the pace of the transition to electric vehicles. Stellantis has described the current trajectory as risking an “irreversible decline” of the EU’s auto sector. Despite battery electric vehicles reaching a 16% market share in early 2025, challenges like uneven charging infrastructure and high energy costs remain major barriers to growth. Automakers are now pushing for incentives to stimulate EV demand rather than rigid mandates.
- https://www.reuters.com/world/china/european-car-sales-rise-49-october-acea-says-2025-11-25/ – In October 2025, European car sales rose by 4.9%, driven predominantly by a surge in electric vehicle (EV) registrations, according to data from the European Automobile Manufacturers’ Association (ACEA). Total sales in the EU, the UK, and the European Free Trade Association reached 1.092 million vehicles. The automotive market continued to face challenges such as trade tariffs, sluggish Chinese demand, and concerns over chip supplies, particularly involving Dutch chipmaker Nexperia. Despite these issues, electric, plug-in hybrid, and hybrid vehicles together made up nearly 64% of total EU registrations—up from 55.4% in October 2024—highlighting a shift toward electrification. Registrations rose significantly for brands like Renault (+10.6%), Volkswagen (+6.5%), and Stellantis (+4.6%). Tesla, however, saw a notable 48.5% drop in sales, while Chinese competitors like BYD and SAIC Motor posted gains of 206.8% and 35.9%, respectively. All major EU countries, except Italy, recorded positive sales growth. Despite the gains, ACEA noted that overall volumes remain below pre-pandemic levels and that EV adoption is still trailing the pace needed for a successful transition.
- https://www.reuters.com/world/china/renault-ceo-backs-new-eu-rules-sourcing-local-parts-seeks-broader-definition-2025-11-24/ – Renault CEO Francois Provost expressed support for EU-wide rules requiring local sourcing in the automotive sector to counter Chinese competition but stressed the need for a more flexible definition of Local Content Requirements. While some suppliers are pushing for a strict 80% local content threshold, Provost advocates for a more realistic approach, suggesting an average content requirement per manufacturer, potentially around 60%. He warned that overly complex or rigid regulations tied to individual models or mandatory parts would be ineffective and hard to implement. This approach aims to maintain competitiveness and garner broader industry support, particularly from reluctant players like German automakers. Meanwhile, the EU automotive suppliers’ association Clepa warned that without such measures, manufacturing displacement could threaten up to 350,000 EU jobs by 2030. Valeo’s CEO also cautioned that the absence of local sourcing rules could lead to site closures and a shift in production to countries like China. Provost noted that although EU officials recognize the urgency, key aspects of the policy are still under negotiation ahead of the European Commission’s upcoming policy announcements on December 10.
- https://www.acea.auto/pc-registrations/new-car-registrations-1-9-in-h1-2025-battery-electric-15-6-market-share/ – In the first half of 2025, new EU car registrations dropped by 1.9% compared to the same period last year. Despite this decline, the battery-electric car market share reached 15.6%, an increase from 12.5% in the first half of 2024. Hybrid-electric car registrations surged, capturing 34.8% of the market, remaining the preferred choice among EU consumers. The combined market share of petrol and diesel cars fell to 37.8%, down from 48.2% over the same period in 2024. In the first half of 2025, new battery-electric car sales reached 869,271 units, with Germany (+35.1%), Belgium (+19.5%), and the Netherlands (+6.1%) seeing gains. France, however, experienced a decline of 6.4%. Hybrid-electric vehicles now account for 34.8% of the total EU market share, with plug-in hybrids representing 8.4%, up from 6.9% in June 2024.
- https://www.acea.auto/pc-registrations/new-car-registrations-1-4-in-october-2025-year-to-date-battery-electric-16-4-market-share/ – By October 2025 year-to-date (YTD), new EU car registrations increased by 1.4% compared to the same period last year, marking the fourth consecutive month of growth. Despite this recent positive momentum, overall volumes remain far below pre-pandemic levels. The battery-electric car market share reached 16.4% YTD, yet it is still below the pace needed at this stage of the transition. Hybrid-electric vehicles lead as the most popular power type choice among buyers, with plug-in hybrids continuing to gain momentum. Up until October 2025, battery-electric cars accounted for 16.4% of the EU market share, an increase from 13.2% in October 2024 YTD. Hybrid-electric car registrations captured 34.6% of the market, remaining the preferred choice among EU consumers.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative is current, with the earliest known publication date of similar content being June 2025. The report is based on a press release, which typically warrants a high freshness score. However, the article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. ([cleanenergywire.org](https://www.cleanenergywire.org/news/german-car-industry-calls-reversal-eu-2035-combustion-engine-ban?utm_source=openai))
Quotes check
Score:
7
Notes:
The report includes direct quotes from German Chancellor Friedrich Merz and other industry leaders. The earliest known usage of these quotes is from late November 2025. No identical quotes appear in earlier material, suggesting originality. However, if quote wording varies, note the differences.
Source reliability
Score:
3
Notes:
The narrative originates from a press release, which typically warrants a high freshness score. However, the source’s reliability is uncertain due to its obscure nature and lack of verifiable information. This raises concerns about the authenticity of the content.
Plausability check
Score:
7
Notes:
The claims about the European Commission’s upcoming automotive support package and the challenges faced by the automotive industry are plausible and align with recent developments. However, the lack of supporting detail from other reputable outlets and the use of dramatic language in the tone raise concerns about the report’s credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents current information but originates from an obscure source with uncertain reliability. While the content is plausible, the lack of supporting detail from other reputable outlets and the use of dramatic language in the tone raise concerns about the report’s credibility. Therefore, the overall assessment is ‘FAIL’ with medium confidence.
