The European Union's Environment Committee has voted to dilute its 2035 ban on new petrol and diesel cars, a move that could increase pressure on the UK to soften its own electric vehicle (EV) sales targets.
The committee approved proposals to lower CO2 reduction targets for cars to 87.5 percent and for vans to 80 percent by 2035, a reduction from the original aim of 90 percent. This revised target would permit a limited number of hybrid, petrol, and diesel vehicles to continue being sold beyond the mid-2030s, rather than enforcing a complete prohibition on new fossil-fuel vehicles.
This development mirrors discussions within the UK government, which is reportedly considering easing its Zero Emission Vehicle (ZEV) Mandate. A consultation closed in October explored reducing the EV sales target for the end of the decade from 80 percent to as low as 50 percent. Such a change would grant manufacturers more flexibility and potentially allow for a greater proportion of hybrid vehicles to be sold.
Intense lobbying from automotive manufacturers, citing high battery costs and competition from Chinese rivals, has influenced the EU's decision. Carmakers have urged Brussels to relax targets, enabling the continued sale of more profitable combustion-engined vehicles. The revised EU rules could offer consumers more choices if they are unable or unwilling to switch to fully electric vehicles. Manufacturers could also receive incentives for producing smaller EVs in Europe, aiming to boost the market for more affordable electric cars and strengthen the European automotive industry.
Massimiliano Salini, vice-chair of the ENVI committee, described the vote as a "turning point" for the European automotive sector, stating that registering combustion engine cars without compensation obligations would remain possible, thus protecting technological freedom and restoring prospects for the supply chain. The proposal was welcomed by organizations such as Toyota and the European automotive trade body ACEA, which characterized it as a "pragmatic approach."
In the UK, any relaxation of EV sales rules in Europe is likely to amplify calls for similar action. The current ZEV Mandate requires manufacturers to achieve a year-on-year increase in EV sales, reaching 80 percent by 2030. While the ban on new pure petrol and diesel cars from 2030 remains on the books, the proposed reforms include allowing a higher percentage of hybrid vehicles. If the pure-EV requirement is reduced to 50 percent, hybrids could constitute the other half of new car registrations. The Department for Transport is specifically examining the role of plug-in hybrid electric vehicles (PHEVs) and how to encourage their use in electric mode. The government is expected to announce the outcome of its review by early 2027.
Industry groups like the Society of Motor Manufacturers and Traders (SMMT) have argued that recent EV sales growth has come at a significant financial cost to manufacturers, who have spent billions on discounts and incentives to meet sales quotas. The SMMT contends that this level of financial support is unsustainable in the long term.