The European Union is preparing to withdraw its landmark 2035 ban on new petrol and diesel car sales, a move expected to be part of a broader reform package aimed at supporting Europe’s struggling automotive sector. The European Commission may instead propose a 90% reduction in carbon emissions from new vehicles, replacing the full ban initially adopted under the EU’s Green Deal.

The shift follows intense lobbying from car manufacturers and member states such as Germany and Italy, who argue that slow electric vehicle (EV) adoption and competition from China make the original target unrealistic. According to industry data, only about 16% of new cars sold in Europe during the first nine months of 2025 were battery-powered. Environmental groups warn that relaxing the ban could undermine climate goals and discourage EV investment.

The Commission is also considering new incentives for small and affordable EVs and measures to green corporate fleets. The final proposal is expected to test the EU’s balance between industrial competitiveness and environmental commitments.