In a long-anticipated move, the European Union has rolled back on its plan to ban the sale of combustion-engine cars from 2035.
So is the ban plan completely gone?
No, it's not. It's just been adjusted. Originally, the plan called for a 100 per cent reduction in the emissions of new cars sold from 2035. Following much lobbying - largely by German car makers and the German government, but also by Italy, Hungary, Poland and others - that target has now been changed to a 90 per cent reduction, which means some combustion engine models can remain on sale.
Woo-hoo! V12s and flat-sixes for all!
Hold your horse(power)s - it's not quite that simple. While the love does mean that some hybrid and petrol-powered models can stick around beyond 2035, the EU says that this move must be accompanied by emissions cuts in other areas, such as using bio-fuels and synthetic e-fuels, and increasing the use of carbon-neutral steel in vehicle production.
There's also going to be the much-anticipated new 'M1E' category of small cars. These cars, which have been referred to as a European equivalent to Japanese Kei cars, will need to be small, light, and efficient, and they will count for extra carbon credits to offset against petrol-powered models.
There's also going to be a much bigger push to ensure that the company car market goes all-electric, with EU member states told that they must set a 'specific share' of company car fleets that must be made up of zero-emissions vehicles.
Significantly, the change in the EU's proposed regulations now means that there's no final cutoff date for combustion engines. If their emissions can be balanced out to carbon neutrality in some way, they can potentially stay on sale forever.
Is this a good idea?
It's a bit mixed, to be honest. Critics of the move have said that it will cause European car design and engineering to stagnate, and leave an open goal for burgeoning Chinese brands. Others, chiefly those within the car industry, say that it's a necessary move to give car makers the room to keep up with customer demand while making the move towards EV power.
Ronan Flood, managing director of Kia Ireland, which in 2025 has seen an 86 per cent increase in its electric car sales, said: "On the positive side, less and less time is being spent in dealerships talking to consumers about the benefits of electric cars. By the time a customer gets to a showroom, they're very well informed about the relevant benefits, and they know exactly what the car can do.”
However, as Flood points out, the EU's flip-flopping has the potential to send entirely the wrong message: "We don't have anything against the EU's new legislation, as such, but we just don't want to confuse the consumer. There is a point where people know where the legislation has been going, and if we start talking about an extension of the sale of combustion vehicles, that could cause a problem. Even at the moment, even if the sale of ICE vehicles is extended beyond 2035, the emissions targets themselves haven't actually changed, and I can't see how, in the motor industry, we can achieve those targets without the widespread adoption of electric vehicles.”
What happens next?
Now, these new regulations have to go to the European Parliament for final approval and rubber-stamping. It's possible, but unlikely, that green parties in the Parliament could organise a push-back against the proposals. More than likely, they will pass as a formality.
Then we'll have to see how things play out. Will the critics be right, and will this leave Europe's car makers even more exposed to Chinese competition as electric power rises in popularity? Or is the industry right, and does this provide car makers with the wiggle room they need to get customers fully on board with the electric transition? And will European drivers buy into the new M1E small electric car models when they start to appear? We will start to find out soon…