Europe’s flagship plan to end sales of new petrol and diesel cars by 2035 is no longer on a straight track. Instead of a hard cutoff for internal combustion, policymakers are now carving out exemptions, stretching timelines and reopening a debate that many assumed was settled.
I see this shift less as a sudden U-turn than as an admission that the original timetable collided with industrial reality, geopolitical pressure and voter anxiety. The result is a looser framework in which combustion engines survive in various forms well beyond 2035, even as electric vehicles remain the official destination.
How the 2035 combustion deadline was supposed to work
When the European Union first agreed its 2035 target, the idea was simple on paper: new cars registered after that year would have to be effectively zero emission at the tailpipe. The rule was framed as a ban on the sale of new petrol and diesel cars, a move designed to align road transport with the bloc’s wider climate goals and to give manufacturers a clear end date for internal combustion development. The official explanation set out how the measure would phase in, answering basic questions such as When the ban would bite and which vehicle categories it would cover.
In practice, that framework meant carmakers had just over a decade to pivot their European lineups from combustion engines to battery electric or other zero tailpipe emission technologies. The 2035 date became a planning anchor for everything from factory investments to charging infrastructure, and it was widely interpreted as the moment when the traditional petrol hatchback or diesel SUV would disappear from new-car showrooms. By locking in that horizon, lawmakers hoped to accelerate innovation while giving industry enough time to adapt without a chaotic cliff edge.
From hard ban to delay and carve-outs
The political mood around that hard cutoff has now changed. The European Union has effectively abandoned the original plan to stop sales of new petrol and diesel cars in 2035, with officials instead preparing to push the deadline back to 2040 and to allow more flexibility in how the transition unfolds. Reporting on the revised approach describes how the bloc is moving away from a simple prohibition and toward a more graduated phaseout, with the new target year framed as a compromise between climate ambition and industrial feasibility that still gives combustion technology a longer runway.
This shift is not happening in isolation. The same reporting notes that the change has already prompted speculation over whether other jurisdictions will follow, asking bluntly, “Will the UK reconsider the ban too?” as it details how The European Union is preparing to delay its petrol and diesel phaseout to 2040. That question underlines how influential Brussels remains in setting the global tempo for automotive regulation, and how a softer stance in Europe can ripple into policy debates in London and beyond.
Hybrids and the five-year reprieve
One of the clearest signs that Europe is backing away from a strict 2035 cutoff is the emerging plan to give hybrid technology more breathing space. Instead of forcing all new cars to be fully electric by that date, policymakers are now considering a five year respite that would allow some hybrid models to keep using combustion engines until 2040. The idea is to treat hybrids as a transitional technology, keeping them on the market longer for drivers who are not ready or able to switch to a pure battery electric vehicle but who still want lower emissions than a conventional petrol or diesel car.
This adjustment is being driven by a coalition of national capitals and manufacturers. According to people familiar with the discussions, Governments and carmakers argue that shifting away from current technology by 2035 is too aggressive and risks killing a core part of Europe’s industrial base. They warn that an abrupt end to combustion could trigger job losses in engine and transmission plants, undermine suppliers that still depend on mechanical components and alienate consumers who see hybrids as a more practical stepping stone than a full EV, especially in regions with patchy charging networks.
Automakers’ long campaign to keep engines alive
For years, European officials projected confidence that they could resist pressure from the car industry to dilute the 2035 rules. The official line was that the climate imperative outweighed short term discomfort and that manufacturers had already committed to electrification strategies that would make the deadline achievable. Behind the scenes, however, companies continued to lobby for more flexibility, arguing that the technology mix should remain open and that synthetic fuels, hybrids and more efficient combustion engines still had a role to play after 2035.
That lobbying has now paid off. Detailed accounts of the policy shift describe how, after a long standoff, regulators have effectively waved the white flag on a pure combustion ban and accepted that some internal combustion engines will be allowed after 2035. One analysis notes that For years EU officials had seemed unwilling to give in to automaker demands to walk back the planned ban, only to now concede that engines will continue in certain forms beyond the original deadline. That outcome reflects not just corporate lobbying power but also the political weight of regions where engine plants and their suppliers remain major employers.
Merz, “technological openness” and the new political narrative
The retreat from a strict 2035 cutoff is also being framed in explicitly political terms. German Chancellor Friedrich Merz has emerged as one of the most prominent voices arguing that the original plan underestimated the challenges of a rapid, all electric transition. He has acknowledged that electric vehicles are not yet a complete solution for every driver or every use case, citing concerns about charging infrastructure, battery costs and the resilience of supply chains for critical materials. In that context, he has pushed for a more flexible approach that keeps multiple technological pathways on the table.
That argument has been folded into a broader narrative about innovation and choice. Reporting on the policy shift notes that German Chancellor Friedrich Merz has welcomed the European Commission’s decision to give up on a rigid 2035 internal combustion engine ban, presenting it as a victory for what he calls “technological openness.” In practice, that phrase signals a willingness to keep backing combustion engines that run on low carbon fuels, to extend the life of hybrids and to avoid locking the market into a single drivetrain technology. It also resonates with voters who worry that a one size fits all electric mandate could limit their options or make car ownership more expensive.
Geopolitics and the U.S. tariff threat
Europe’s change of course is not only about domestic politics and industrial policy. It is also unfolding against a tense geopolitical backdrop, particularly in the relationship with the United States. As Washington threatens new tariffs on European exports, including potentially on cars, Brussels is under pressure to show that its own regulatory framework does not unfairly disadvantage foreign manufacturers or distort competition. That context has made the 2035 combustion deadline part of a larger negotiation over trade, industrial subsidies and the balance of power in the global auto market.
One detailed account of the evolving policy notes that The European Commission has officially proposed reconsidering the 2035 combustion engine ban at the same time as a U.S. tariff threat looms. The report highlights that the United States is the EU’s largest export market and that new duties could begin as early as April, a timeline that concentrates minds in Brussels. By softening the combustion rules, European officials hope to preserve the competitiveness of their carmakers abroad while also reducing the risk that strict green regulations become a bargaining chip in transatlantic trade disputes.
What the new path means for car buyers
For drivers across Europe, the most immediate consequence of this policy shift is that combustion engines will remain part of the new car landscape for longer than many expected. Instead of a clear line after which only battery electric models are available, buyers are likely to see a more mixed market well into the 2030s and even the early 2040s. That could include new generations of plug in hybrids that combine smaller petrol engines with larger batteries, as well as combustion cars designed to run on synthetic or bio based fuels that claim lower lifecycle emissions than today’s petrol and diesel.
At the same time, the change introduces new uncertainty. Consumers who had assumed that buying a petrol or diesel car in the early 2030s would be a short term choice now face a more complex calculation about resale values, fuel availability and future restrictions in city centers. The question flagged in the reporting about whether the UK might reconsider its own timetable underscores how national governments could diverge, leaving drivers in London facing different rules from those in Berlin or Paris even if they buy similar vehicles. That patchwork risk is the flip side of the flexibility that comes with backing away from a single, bloc wide combustion cutoff.
Industry strategy: hedging bets between EVs and engines
Inside car companies, the loosening of the 2035 target is already reshaping strategy. Many manufacturers had publicly committed to going all electric in Europe by the middle of the next decade, aligning their product plans with the original regulatory horizon. Now, with hybrids granted a five year reprieve and combustion engines allowed to survive in some niches beyond 2035, executives have more room to hedge. That could mean extending the life of existing engine platforms, investing in cleaner combustion technologies or keeping hybrid variants in production for longer alongside new electric models.
Yet the industry cannot simply roll back its electrification push. Battery plants, dedicated EV platforms and software architectures for connected cars represent multi billion euro bets that will not be unwound because of a five year delay or a handful of exemptions. Instead, the likely outcome is a dual track strategy in which companies continue to ramp up electric offerings while also squeezing more value out of their combustion assets. The political signal from Brussels that engines will not be outlawed overnight gives them cover to do so, but it also risks slowing the pace at which they retire older, higher emitting models from their lineups.
Climate credibility and the risk of a slower transition
The central question hanging over Europe’s retreat from a strict 2035 ban is what it means for the continent’s climate credibility. Road transport is a major source of greenhouse gas emissions, and the original combustion cutoff was a cornerstone of the EU’s plan to reach its broader climate targets. By extending the life of hybrids and allowing some combustion engines to continue after 2035, policymakers are accepting a slower decline in tailpipe emissions than previously envisaged. That may be politically and economically easier in the short term, but it leaves less room for error elsewhere in the climate portfolio.
Supporters of the new approach argue that it reflects a more realistic assessment of technology and consumer behavior. They point out that electric vehicles still face barriers in parts of Europe where charging infrastructure is sparse, incomes are lower or winters are harsh, and that forcing a rapid, universal switch could provoke a backlash that undermines support for climate policy more broadly. Critics counter that every extra year of combustion locks in emissions and delays the scale effects that would make EVs cheaper and more accessible. In that sense, Europe’s decision to back away from its original 2035 plan is not just a technical adjustment but a test of how far it is willing to bend its climate timetable to accommodate industrial and geopolitical pressures.
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