The European Commission is preparing to retreat from its planned 2035 ban on new combustion-engine car sales, yielding to pressure from Germany, Italy and automakers struggling to compete with U.S. and Chinese rivals, according to Reuters. The announcement is expected Tuesday.

EU and industry sources say the ban could be delayed by five years or softened indefinitely, turning a once-firm rule into something more aspirational. The reversal would mark the bloc’s biggest climb-down from its green agenda in the past five years.

"The European Commission will be putting forward a clear proposal to abolish the ban on combustion engines," said Manfred Weber, head of the European Parliament’s largest political group. "It was a serious industrial policy mistake."

Traditional automakers such as Volkswagen and Stellantis have lobbied hard for relief, arguing EV demand has fallen short, costs remain high and charging infrastructure is uneven. EU tariffs on Chinese EVs have barely dented the pressure.

EV-focused companies warn the rethink hands China an even bigger advantage in electrification.

"The technology is ready, charging infrastructure is ready, and consumers are ready," said Polestar CEO Michael Lohscheller. "So what are we waiting for?"

Reuters writes that the 2023 law was meant to force a rapid shift to batteries or fuel cells, with fines for non-compliance. But European carmakers still trail Tesla and Chinese groups like BYD and Geely on scale and cost. Earlier this year, the EU already granted automakers “breathing space” by spreading 2025 compliance over three years.

Manufacturers now want to keep selling combustion engines alongside plug-in hybrids, range-extender EVs and vehicles running on so-called CO2-neutral fuels. Commission President Ursula von der Leyen signaled openness to e-fuels and “advanced biofuels” in October.

"We recommend a multi-technology approach," said Todd Anderson of Phinia, adding the internal combustion engine will "be around for the rest of the century."

EV industry players say regulatory backtracking will undermine investment.

"It's definitely going to have an effect," said ChargePoint CEO Rick Wilmer.

Automakers also want the 2030 target of a 55% cut in car emissions phased in over several years and the 50% reduction target for vans dropped. Germany wants climate credits for low-carbon steel and other upstream measures.

Environmental groups say the EU should stick to the 2035 deadline, arguing biofuels are scarce, expensive and not truly carbon-neutral.

"Europe needs to stay the course on electric," said William Todts of T&E. "It's clear electric is the future."

Whether Brussels actually stays the course, or keeps rewriting the rules when reality intervenes, remains to be seen.

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