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EU likely to drop ban on combustion engine cars

Dec 17, 2025, 10:37am EST
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The new Ford Focus cars are lined up for the European presentation to the press in Nice
Eric Gaillard/Reuters

The EU appears likely to drop what had amounted to a ban from 2035 on the sale of combustion-engine cars, under pressure from the continent’s beleaguered auto industry.

The move is yet to be finalized, but would allow sales of plug-in hybrids, and marks the latest watering-down of the bloc’s green policies. The shift comes as European carmakers struggle to compete with Chinese rivals.

Other Western markets are pivoting, too: The US has reduced incentives for EV purchases, while Britain — where Chinese EVs have taken off and which also has a scheduled 2035 ban — said it would be “responsive” to the car industry as Europe shifts its targets.

Chart showing EU car sales by power source
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