What the EU 2035 ICE ban changes mean for European automakers
So, will internal combustion engines be banned after 2035? The short answer is NO. The reversal of the EU 2035 ICE ban will still allow OEMs to sell vehicles featuring traditional ICE powertrain elements beyond that date, with plug-in hybrid electric vehicles, range extenders, mild hybrids and ICE vehicles all still allowed for sale as part of an OEM’s powertrain mix.
Here below we share the comments (from Reuters) from various European car manufacturers.
FRENCH CARMAKER RENAULT
“Renault Group welcomes the Commission’s adoption of an automotive package that addresses some of the major challenges facing the European industry.
“We particularly note the emphasis placed on the need to accelerate the adoption of electric vehicles, both through the introduction of a category of small electric vehicles under 4.2 metres and through a European initiative on the greening of fleets.”
GERMAN CARMAKER VOLKSWAGEN
“The European Commission’s pragmatic draft proposal for new CO2 targets is economically sound overall.”
“The fact that small electric vehicles are to receive special support in future is very positive… Opening up the market to vehicles with combustion engines while compensating for emissions is pragmatic and in line with market conditions.”
GERMAN CARMAKER MERCEDES-BENZ
“The EU Commission has taken a step in the right direction towards more flexibility for us as manufacturers and towards the necessary technological neutrality. The EU is thus reacting to the stagnating ramp-up of electric mobility in Europe.”
GERMAN LUXURY CARMAKER BMW
“It is an important first step that the EU Commission no longer pursues technology bans as a guiding principle, but recognises the future viability of the combustion engine.”
STELLANTIS
“The proposals do not meaningfully address the issues that the industry is facing right now. Specifically, the package fails to provide a viable trajectory for the light commercial vehicles segment, which is in a critical situation, and the 2030 flexibilities requested by the industry for passenger cars.”
VOLVO CAR
“Weakening long-term commitments for short-term gain risks undermining Europe’s competitiveness for years to come. A consistent and ambitious policy framework, as well as investments in public infrastructure, is what will deliver real benefits for customers, for the climate, and for Europe’s industrial strength.”
“Volvo Cars has built a complete EV portfolio in less than ten years and are ready to go full electric with a bridge of long-range hybrids. If we can do it, others can as well.”
Meanwhile, the OEMs will be able to continue selling ICE cars past 2035 by taking advantage of a new EU initiative that introduces a category of small, affordable BEVs as a way to mitigate the Europe ICE ban.
This initiative aims to stimulate the market for low-cost electric vehicles (EVs) by introducing a new vehicle category (up to 4.20 m in length). It is designed to help EU manufacturers build and sell cheaper and safer small EVs, strengthen the competitiveness of the European automotive industry and provide affordable mobility for more people.
The initiative promises benefits such as lower prices (target: €15,000–€20,000), greater choice, more support for European production through guaranteed demand via platforms and tax incentives and sustained industry competitiveness.
The EU announced a much-needed break for the light commercial vehicle (LCV) sector, where BEV LCV adoption has been much slower than anticipated. The 2030 CO2 LCV target will be reduced from 50% to 40%.
The European Commission also said it would promote BEV adoption among companies and corporate fleets by encouraging member states to set mandatory targets for large company vehicle fleets. Vehicles benefiting from public financial support also must be zero- or low-emission and made in the EU.
To further support the EU BEV manufacturing supply chain, the Commission announced the €1.8 billion Battery Booster program. Most of this amount will be made up of €1.5 billion in interest-free loans to support European battery cell producers.
Reaction to the 2035 petrol and diesel ban revisions
The watering down of the EU 2035 ICE ban elicited a predictably wide array of responses from stakeholders. Responses to the Europe ICE ban reflect how automakers, environmental groups and industry associations view the new balance between flexibility and emissions targets.
The OEM Response:
The response from the European Automobile Manufacturers’ Association (ACEA) was broadly positive, with Director General Sigrid de Vries stating, “Today’s proposals rightly recognise the need for more flexibility and technology neutrality to make the green transition a success. This constitutes a major change compared to the current law.
However, the devil can be very much in the detail. We will now study the package, and work with co-legislators to critically strengthen the proposals where needed.”
