At least seven European Union member states are calling on the European Commission to scrap the prohibition of selling new diesel and petrol vehicles by 2035, arguing that the bloc’s automotive sector will succumb to the ban otherwise, according to two letters seen by Euronews.
Bulgaria, the Czech Republic, Germany, Hungary, Italy, Poland and Slovakia argued that it is “imperative” that the European Commission considers the sale of hybrid vehicles after 2035 as part of the upcoming legislative review announced by the EU executive.
While the seven countries say they recognise the need to reduce CO2 emissions, they defend that the EU member states’ law should be grounded in technological neutrality, which essentially gives national governments the freedom to choose the best way to maintain competitiveness while cutting emissions.
Alternatives called by the signatories include hybrid electric vehicles, hydrogen and biofuel-powered cars. The seven member states also flagged the need for additional charging infrastructure and hydrogen refuelling points across the EU and for the Commission to improve their availability.
“The Commission’s proposal should primarily focus on good practices, tax incentives and support programmes and reflect a technologically neutral approach in promoting the transition to low-and zero-emission vehicles,” one of the letters signed by all EU countries except Germany stated.
The seven countries lobbying the EU executive, representing roughly half of the EU population, have long been vocal opponents of the ban on internal combustion engines (ICEs) by 2035. They claim their automakers are struggling with high energy prices, a shortage of car components, including batteries, and insufficient consumer demand for electric vehicles (EVs).
“We aim to maintain the strategic independence of the European automotive industry,” reads a second letter signed by Germany and Italy.
Automotive’s industry crisis
Following China’s emergence as a leading global exporter, Europe’s market for battery electric vehicles has been flooded with brands such as BYD, while domestic manufacturers have been slow to embrace battery EVs.
Even Elon Musk’s Tesla is facing Chinese competition in Europe, with registrations falling by more than 50% in France and Sweden, and by 40% in Denmark, the Netherlands and Portugal, according to official data.
A long-time automotive powerhouse, Germany is already feeling the heat as it adapts to the EU law adopted in March 2023, which mandates the end of new sales of diesel and petrol cars.
Berlin argues that prioritising the production of clean vehicles and ensuring the sustainable use of car parts and materials are pushing the country away from global competition.
German MEP Jens Gieseke (EPP), who sits on both the environment and industry committees in the European Parliament, defended his group’s opposition to the Commission-proposed blanket ban on ICEs.
“We proposed to open up the legislation by recognising the role of CO2-neutral fuels, opening up a pathway for decarbonised ICEs to become part of the future technology mix,” Gieseke told Euronews.
“That way, a fair, open and market-based competition between different propulsion technologies would have been possible.”
Sigrid de Vries, director general at the automotive lobby group European Automobile Manufacturers’ Association (ACEA), said the 2035 target is “no longer realistic” given the lack of sufficient levels of infrastructure and grid upgrades.
“Today’s CO2 regulation focuses only on new vehicle supply, without doing enough to spark real demand, whether through infrastructure, total cost of ownership, or incentives, and without linking it with competitiveness and resilience,” said de Vries.
The EU executive is due to announce revisions to the CO2 standards for cars and vans on Wednesday. However, previous statements from Commission spokespersons have suggested that the EU executive may delay its proposal.