EU Backtracks on 2035 Combustion Ban for Car Makers

Shifting Goalposts for Combustion Engines

The strict rule pushing to wipe out new combustion engines across Europe by 2035 is facing a major rewrite. Lawmakers in the European Parliament Environment Committee backed a proposal to lower the target for fleet emission cuts to 87.5 percent, down from the absolute 100 percent ban previously planned. This adjustment opens a legal pathway for manufacturers to keep selling internal combustion vehicles past the original deadline.

Car makers have spent years pointing out the struggles of bringing battery costs down, making traditional fuel burners far more profitable for company balance sheets. The newly approved framework offers extra breathing room through flexible credits. Up to 7.5 percent of the reduction targets can be met using European-produced low-carbon steel, while vehicles running exclusively on eligible fuels, such as biofuels, will be counted under zero-emission categories.

Credits and Rules for Future Models

Manufacturers will also benefit from a system of super-credits designed to protect local production lines. Brands building compact models up to 4.2 meters long within the European Union will see each sale count as 1.4 units, while ultra-efficient larger models will secure a 1.2 multiplier. At the same time, mandatory rules for company fleets are shifting into non-binding, aspirational goals, removing heavy legal penalties for corporate buyers.

Not everyone is celebrating the policy shift. Transport and Environment warned that allowing biofuel compatibility and easing targets will siphon away critical investments and hurt local competitiveness against cheap imports from Chinese rivals. Meanwhile, the European People's Party views the outcome as a major win for the industry, preserving traditional engine technology.

What Car Buyers Should Watch For

Drivers looking at the showroom landscape can expect traditional engines to stick around much longer than first anticipated. With fuel prices for petrol and diesel climbing this year, and car makers juggling compliance through range-extender layouts and low-emission steel credits, the market is pivoting toward a mixed approach rather than a sudden cutoff.

The package still requires a full vote by the European Parliament plenary in December before heading into final negotiations with member state governments. Watch how manufacturers price their upcoming lineups and whether alternative fuel options gain traction at local dealerships before making a long-term purchase commitment.