- The ban on cars with combustion engines can be postponed until 2040
- Manufacturers opposed the legislation.
- More hybrid powertrains and range extenders are likely to hit the market.
An article published this week in German newspaper Bild claims that plans to introduce a ban on the sale of new combustion engine cars in the EU by 2035 have been shelved, reports German newspaper Bild. Reuters.
Manfred Weber, leader of the EPP, the largest party in the European Parliament, said the plans were “not on the table” and that a more flexible system for emissions reductions should be introduced instead.
“For new registrations from 2035 onwards, a reduction of CO2 emissions by 90 percent instead of 100 percent is now mandatory for car manufacturers’ fleet targets,” Weber told Bild.
There is still a target to reduce CO2 emissions by 100%, but Weber claims that this target has been pushed back to 2040. This measure was apparently taken to secure “tens of thousands of industrial jobs”.
Unsurprisingly, Mercedes-Benz, Volkswagen, Stellantis Group and Renault have spoken out in favor of lifting the ban, saying decisions should be made by customers and not by legislation.
The original plan, signed in 2021, called for a ban on the sale of all new vehicles with combustion engines, forcing automakers to sell only pure electric vehicles until 2035.
But many manufacturers argued that the deadline was too close and that customer demand for electric vehicles simply did not exist.
Therefore, major players such as Porsche and Ford have taken a step back in recent months and distanced themselves from purely electric projects.
For example, Porsche had suggested that the new Macan and Cayenne would be fully electric, but then changed its mind and announced that petrol and hybrid vehicles would continue to be offered in the future.
Although the UK is no longer part of the European Union, in 2020 it was one of the first countries to offer a sales margin for cars with internal combustion engines. But following Weber’s announcement, Britain has yet to reveal any details of its plans.
Analysis: Electric vehicles remain inevitable
Although the timetable has been pushed back by five years, there are still plans to reduce CO2 emissions by 90%, which remains a difficult target for many manufacturers.
This means that all vehicles with a combustion engine run the risk of becoming a plug-in hybrid or extended-range hybrid in order to comply with the legislation.
It could also accelerate the deployment of advanced biofuels and e-fuels, as these can be certified as carbon-free if they are produced using captured CO2 and renewable electricity.
The proposed relaxation of the deadline will give automakers more time to make the seemingly inevitable switch to an all-electric model. In the meantime, they can continue to develop hybrid powertrains that customers value for their efficiency, without the range concerns that come with them.
Either way, most major automakers will continue the transition to all-electric vehicles over the next fifteen years to meet 100% CO2 reduction targets, while all-electric newcomers – especially Chinese brands – will continue to have a competitive advantage.
Not only can they competitively produce electric vehicles that are more profitable, but they also lack the historical tradition of producing internal combustion engines and the associated range and performance indicators.