The European Union’s (EU’s) plan mandating all new cars sold by 2035 to be zero-emission vehicles has been revised, and that’s stirring concern among electric vehicle (EV) start-ups and investors.
Instead of a full ban on petrol and diesel cars, the updated proposal gives automakers more flexibility — but at a potential cost to Europe’s EV leadership.
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| This EU decision may hit the likes of Tesla. |
What’s changed in the 2035 EV target?
Originally, the EU wanted 100 per cent of new car sales by 2035 to be zero-emission vehicles.
That meant only fully electric cars could be sold starting that year.
But under the revised plan, the European Commission may allow up to 10 per cent of new car sales to be non-zero-emission vehicles, including hybrids and other types.
But, for this, manufacturers must buy carbon offsets to balance out emissions.
This shift is part of a larger “automotive package” aimed at balancing environmental goals with the economic pressures facing the European auto industry.
The commission says this flexibility is needed to help traditional automakers stay competitive and avoid job losses.
Why traditional automakers support the change
Legacy carmakers in Europe — those making petrol, diesel, and hybrid cars — have pushed for more time to transition to full electrification.
These companies argue that moving too fast towards EVs could hurt their global competitiveness, especially against countries like China where EV production is booming and electric models are more affordable.
By easing the 2035 requirement, these automakers can continue producing hybrid vehicles and gradually shift to electric models without the pressure of meeting a strict deadline.
That flexibility is seen as a way to protect jobs and maintain industry stability in countries where car manufacturing is vital to the economy.
Start-ups say this weakens Europe’s electric future
Not everyone agrees with the change. Electric start-ups and venture capital investors are anxious that loosening the target could slow down Europe’s EV progress.
It could weaken the region’s role as a global leader in electric transportation.
Many start-ups believe that relaxing the rules will delay electrification, weaken learning curves, and eventually cost Europe its competitive edge in EV technology.
They warn that if the region doesn’t stick to ambitious goals, it could fall behind countries like China, which already dominate EV manufacturing.
EU isn’t abandoning support for EV technology yet
Part of the automotive package includes the “battery booster”, a plan to invest around €1.8 billion in developing a European battery industry and building more local supply chains.
This investment is meant to strengthen production of electric vehicle batteries and reduce dependency on foreign suppliers.
Some companies, like French battery start-up Verkor, welcomed this move. They believe that a stronger battery supply chain could help scale up EV production in Europe.
What this means for future of EVs in Europe
If the European Parliament approves the revised rules, Europe’s transition to electric vehicles may slow down rather than accelerate.
Allowing a share of hybrid and combustion engine vehicles beyond 2035 could make the shift to EVs less urgent for manufacturers and buyers alike.
On the other hand, some say the added flexibility could help the industry adapt to current obstacles — such as high EV costs, limited charging infrastructure and global competition — without causing market disruption.
E-Vroooom’s views
Ultimately, the watering down of norms will shape not just Europe’s EV market but its broader economic and climate future even as start-ups and new-age companies remain worried.
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