EU considers pushing back the 2035 gasoline car ban to 2040, citing industry pressure and EV challenges. Discover the impact on Europe’s green push. Read more now.
The European Commission has unveiled a draft that could shift the deadline for ending sales of new gasoline‑powered cars from 2035 to 2040. The proposal would still require a near‑zero‑emission fleet, but it allows a small share of internal‑combustion vehicles to remain on the market.
What the new proposal entails
Under the current rule, all new passenger cars and light trucks sold from 2035 onward must emit zero CO₂. The revised plan would lower the target to a 90% reduction rather than a full 100% cut. In practice, this means the majority of new vehicles will still need to be battery‑electric, while a limited “residual” quota could be filled by cars with conventional engines.
Manufacturers would be required to offset the remaining emissions using low‑carbon steel produced in the EU, synthetic fuels, or non‑food‑based bio‑fuels such as agricultural waste and used cooking oil.
Transition windows for manufacturers
- 2025‑2027: a three‑year “transition period” to cut CO₂ emissions by 55% compared with 2021 levels.
- Light‑truck emissions target for 2030 would be relaxed to a 40% reduction instead of the previously set 50%.
These changes still need approval from EU member governments and the European Parliament. If adopted, they would represent the steepest rollback of green policy in the bloc in the past five years.
Why the EU is reconsidering
When the ban was first adopted in 2023, it was hailed as a milestone in the fight against climate change. Since then, powerful pressure from the German and Italian automotive sectors—and a broader industry coalition—has intensified.
European carmakers argue that the rapid shift to electric vehicles (EVs) is hampered by high upfront costs, limited charging infrastructure across the 27 member states, and waning consumer subsidies. According to industry data, only about 16% of new vehicles sold in the first nine months of 2025 were battery‑electric.
German Chancellor Olaf Scholz’s recent decision to cut EV purchase incentives, combined with the relatively high price of European‑made electric cars, has further slowed demand.
Economic pressures on the automotive sector
The EU’s automotive industry employs roughly 14 million people and contributes around 7% of the bloc’s GDP. Recent layoffs and plant closures have heightened concerns that a 2035 ban could jeopardise thousands of jobs.
At Schaeffler—a leading German parts supplier—employees voiced anxiety over job security. “About half of us are worried about our future,” said Volker Robel, a workers’ council member.
Industry executives like Matthias Zink of Schaeffler argue for a “level‑playing‑field” approach that balances carbon‑reduction goals with realistic technology pathways.
Challenges for EV adoption
EVs remain the cornerstone of Europe’s decarbonisation strategy, yet several hurdles persist:
- High purchase price compared with conventional cars.
- Insufficient public charging networks, especially in rural and peripheral regions.
- Policy uncertainty after subsidies were retracted.
Simon Young, a reporter for DW, summed up the sentiment: “European consumers are price‑sensitive, and the lack of a reliable charging infrastructure makes them hesitant to switch to EVs.”
International implications
Critics warn that diluting the ban could send a confusing signal to both manufacturers and consumers. Lucien Mathieu of the Transport and Environment group cautioned, “Every euro spent on internal‑combustion technology is a euro not invested in electric mobility, making it harder for Europe to keep pace with China.”
How Vietnam is tackling the same issue
Across the globe, Vietnam has announced an aggressive green‑transport roadmap: by 2040 it aims to end domestic production, assembly, and import of fossil‑fuel‑powered cars and motorcycles, moving to 100% electric or renewable‑fuel vehicles by 2050. The plan includes a target of at least 50% of new taxis and buses running on electric or green fuels between 2025‑2030.
Major Vietnamese cities such as Hanoi are already piloting phased bans on gasoline motorcycles in outer districts, coupled with congestion charges and fees to encourage a shift toward cleaner transport.
What’s next?
The EU’s proposal will be debated in the coming months. If adopted, it could reshape the timeline for Europe’s electric‑vehicle transition, affect millions of jobs, and influence global automotive strategies.
Stakeholders—governments, manufacturers, and consumers—will need to navigate a complex mix of environmental ambition, economic realities, and technological readiness.