Executive Summary

Key insights and market outlook

The European Commission is set to relax its planned ban on internal combustion engine (ICE) vehicles by 2035, allowing up to 10% non-electric vehicle sales following intense pressure from automotive manufacturers and key EU member states ¹

². This significant policy shift accommodates hybrid and carbon-neutral biofuel vehicles while maintaining the overall green policy trajectory ². The proposal still requires approval from EU member states and the European Parliament.

Full Analysis

02

Deep Dive Analysis

EU Softens Stance on 2035 ICE Vehicle Ban

Policy Revision Under Industry Pressure

The European Commission is poised to relax its planned 2035 ban on internal combustion engine vehicles, allowing up to 10% of new car sales to be non-electric ¹

². This significant policy adjustment comes after intense lobbying from major automotive manufacturers and key EU member states like Germany and Italy. The revised policy framework is expected to accommodate hybrid plug-in vehicles and models using carbon-neutral biofuels ².

Key Policy Details

The original 2035 target for complete phase-out of ICE vehicles will be revised
Up to 10% of new vehicle sales will be allowed for non-electric vehicles
Hybrid and carbon-neutral biofuel vehicles will be accommodated within the new framework ²
Source 2
https://internasional.kontan.co.id/news/eu-longgarkan-target-mobil-bebas-emisi-2035-10-nonlistrik-diizinkan
The proposal still requires formal approval from EU member states and the European Parliament

Implications for Automotive Industry

This policy adjustment represents a significant shift in the EU's green policy trajectory, balancing environmental goals with industrial realities. The automotive sector has welcomed the flexibility while maintaining commitment to overall emissions reduction targets. The revised policy is expected to influence vehicle development strategies and market offerings in the coming years.

References