Carmakers demand EU ease "tough" ban on petrol cars from 2035 - FT

Automakers have criticized the EU's plans to ban the sale of internal combustion engine cars from 2035, calling them "too rigid" and stating that Brussels has not taken into account the industry's concerns, reports Financial Times, writes UNN.

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In a document sent to the European Commission ahead of a major policy review, seen by the Financial Times, the European Automobile Manufacturers' Association (ACEA), an automotive industry organization, said the de facto ban was based "on outdated assumptions and optimistic projections." The association called for measures that give manufacturers greater flexibility – proposals that activists warn would halve electric vehicle sales in Europe.

The ban on internal combustion engines was a flagship element of the EU's ambitious "Green Deal" climate legislation, which sets the bloc's trajectory for reducing emissions to zero by 2050.

However, this ban has also become one of the bloc's most controversial laws, as European industry struggles to compete with cheaper rivals, especially from China, and a high level of bureaucracy caused by EU environmental regulations.

The ACEA document states that the planned ban will create a "very rigid one-dimensional path" for automakers to achieve the zero-emission target, forcing them to sell only electric vehicles. To achieve the target by 2035, according to ACEA, the share of battery electric vehicle registrations must be 25% of total new car sales this year, but between January and August, this figure remained at around 16%.

Data from S&P Global cited in the document predicts that in 2035, the share of electric vehicles in total new car sales will be 63%.

Automakers must gradually reduce emission targets by 2035 by selling electric vehicles, which are counted as carbon emission credits. ACEA calls for manufacturers to be allowed to meet these targets over five years, which would allow so-called carbon-neutral fuels to be considered zero-carbon and automakers to receive additional credits for selling smaller battery electric vehicles.

The document also proposes softening the penalties imposed on automakers who fail to meet emission reduction targets, by providing manufacturers with credits for scrapping old cars and for reducing carbon dioxide emissions during production.

However, the advocacy group Transport & Environment stated that the measures outlined in the document mean that automakers would only need to achieve a 52% market share for electric vehicles by 2035. Lucien Mathieu, director of vehicles, criticized the industry's proposed measures, saying they would "completely undermine the investment confidence Europe needs to catch up in the EV race."

The ACEA document mentions high energy prices and falling demand for new cars as some of the factors preventing the European automotive industry from achieving its target.

In recent years, European manufacturers have cut tens of thousands of jobs in an attempt to compete with cheaper Chinese products.

The calls from the European automotive industry come as the Trump administration also seeks to roll back greenhouse gas emission regulations in the US. However, critics argue that weakening the ban on gasoline cars would send mixed signals to consumers. EV sales in the EU have increased by 30% this year compared to last year.

Critics also warn that the technological gap with BYD and other Chinese EV competitors will further widen if they slow down the transition to electric vehicles now.

The German government is scheduled to hold an automotive summit on Thursday. German Chancellor Friedrich Merz opposes the ban on internal combustion engines by 2035 and has stated that he will raise the issue with EU leaders at a meeting later this month. Merz's coalition partners from the SPD disagree on lifting the ban.

ACEA Director General Sigrid de Vries said on Wednesday that automakers are making progress in electrification and that her document "offers real solutions to implement this transition."