EU debates extending its gasoline car sales ban to 2040, citing industry pressure and market realities. Learn the key factors and implications. Read more now!
The European Commission is weighing a proposal to delay the 2035 ban on selling new gasoline‑powered cars until 2040. The move, driven by strong lobbying from Germany, Italy and the continent’s auto manufacturers, could reshape Europe’s climate strategy.
Original 2035 Deadline
In 2023, EU law required all newly registered passenger cars and light trucks to emit zero CO₂ from 2035 onward. The rule was hailed as a milestone in the fight against climate change, positioning Europe as a leader in the transition to electric mobility.
Why the Shift?
Commissioner for Climate, Carbon Neutrality and Green Growth Wopke Hoekstra told the European Parliament that Europe faces “intense competition” from China’s rapid advances in EV and battery technology and from the United States, which remains ahead in productivity and innovation. He argued that the bloc must “step up” its pace to stay competitive.
Under the new proposal, the 100% emission‑free target would be softened to a 90% CO₂ reduction for new vehicles, leaving room for a limited number of internal‑combustion engine (ICE) models. Manufacturers would have to offset the remaining emissions with low‑carbon steel, EU‑produced synthetic fuels, or advanced bio‑fuels derived from agricultural waste and used cooking oil.
Transition Window and Light‑Truck Targets
The draft plan also grants a three‑year “transition period” (2029‑2031) for automakers to cut CO₂ emissions by 55% compared with 2021 levels. For light trucks, the 2030 reduction target would be lowered from 50% to 40% of 2021 emissions.
Industry Pushback
European auto giants and component suppliers have been vocal about the economic impact of an abrupt ban. At Schaeffler, a major German parts maker, employee representative Volker Robel noted that a recent internal poll showed roughly half of the workforce worried about job security if diesel engines disappear in 2035.
The sector accounts for about 7% of EU GDP and employs close to 14 million people. A sudden shift could jeopardise jobs, especially in regions heavily dependent on traditional engine production.
Market Realities for Electric Vehicles
Despite policy enthusiasm, EV adoption in Europe remains modest. In the first nine months of 2025, only just over 16% of new cars sold were fully electric, according to industry data. High upfront costs, limited charging infrastructure in many Member States, and the recent reduction of German purchase subsidies have all slowed demand.
Analyst Simon Young of DW explains that “European consumers are price‑sensitive, and the roll‑out of charging stations has lagged, particularly in Germany. That creates uncertainty and dampens enthusiasm for electric cars.”
Competitive Pressure from China and the United States
Chinese manufacturers are flooding the market with inexpensive EVs, while U.S. firms continue to out‑spend rivals in R&D. The combined pressure has forced European policymakers to balance climate ambition with industrial competitiveness.
Expert Opinions on the Proposed Delay
Lucien Mathieu, from the Transport and Environment organization, warned that relaxing the ban would send a “confusing signal” to both carmakers and consumers. He argues that every euro invested in ICE technology is a euro not spent on electric solutions, making it harder for Europe to catch up with China’s rapid electrification.
How This Compares to Vietnam’s Green Transport Roadmap
While Europe debates the timing of its ICE phase‑out, Vietnam has announced an ambitious plan to eliminate fossil‑fuel‑powered cars and motorcycles by 2040, aiming for 100% electric or green‑fuel vehicles by 2050. The Southeast Asian nation is focusing on subsidies, credit support, and expanding charging networks to ensure a smoother transition.
What’s Next?
The proposal still requires approval from EU governments and the European Parliament. If adopted, it would represent the most significant rollback of EU climate legislation in the past five years.
Stakeholders on all sides are watching closely: governments balancing green goals with economic stability, carmakers planning product lines, and consumers wondering when electric mobility will truly become the norm.
Stay tuned for updates as the EU’s climate road map evolves.