(Reuters) – Europe’s embattled carmakers are hoping for a reprieve when Brussels unveils an auto sector package next month, which could water down an effective ban on new combustion engines initially slated for 2035 as a shift towards electric engines stutters.
The continent’s automakers from Volkswagen to Renault RENA.PA had high hopes for the electric vehicle shift when they set ambitious targets at the beginning of the decade, efforts that have since collided with the reality of lower-than-expected demand and fierce competition from China.
WHAT IS EXPECTED ON DECEMBER 10?
Brussels is set to unveil measures designed to support the regional auto industry, one of the EU’s most important sectors, in the face of high energy costs, tariffs on exports to the U.S., and Asian rivals eating into the bloc’s market.
German automakers and the European Automobile Manufacturers’ Association have called for a weakening of rules designed to boost battery or fuel-cell electric drive cars, while Fiat-to-Maserati owner Stellantis (STLAM.MI), warned the industry risks an “irreversible decline” without help.
European sales of purely battery-powered cars have gained in recent years, but not enough to compensate for a decline in combustion engine vehicles.
The regulation that all new vehicles from 2035 should have zero emissions was adopted in March 2023 when the outlook for battery electric vehicles was brighter.
The industry is now pushing for concessions. It hopes the European Commission will accept that CO2-neutral fuels, such as biofuels, could continue to power internal combustion engines, as well as plug-in hybrids or range extenders.
Automakers including Europe’s biggest Volkswagen have argued that immovable targets no longer make sense, and that the market, rather than legislators, should decide when combustion engines are fully phased out. They favour instead incentives to boost demand for electric vehicles.
HOW IT STARTED VS HOW IT’S GOING
|
Automaker |
Initial 2030 Ambition |
Current Ambition |
Battery Electric Vehicle share of total, 2025 (9 months) |
|
Volkswagen Group |
– Six battery factories in Europe alone by 2030, 240 gigawatt hours of capacity – At least 70% of deliveries in Europe expected to be fully electric by 2030 |
– Plans three battery cell factories in Europe and North America, with maximum capacity of 200 GWh – No firm forecast or EV sales target |
10.9% |
|
Porsche |
– More than 80% of deliveries to be fully electric by 2030 |
– No specific EV sales target |
23.1% |
|
BMW |
– Targets 50% of global sales to be fully electric by 2030 – Interim goal: 25% BEV share by 2025 |
– Remains committed to 50% target, dependent on market conditions – 2025 BEV share at the 2024 level (17.4%) |
18% |
|
Mercedes-Benz Group |
– 100% EV sales by 2030 where market conditions allow – Interim: 50% electrified (mostly EV) by 2025 |
– Expects at least 50% electrified (including hybrids) by 2030 – Will keep combustion engines well into the 2030s |
8.8% |
|
Renault Group |
– 100% electric as early as 2030 |
– Targets 100% BEV share in 2035 |
12.7% |
|
Stellantis |
– Global BEV sales of five million units in 2030, reaching 100% of passenger car sales in Europe and 50% passenger cars and light-duty trucks in the United States |
– Stellantis is expected to review goals in Q2 2026 as part of new business plan – Group no longer pursues goal of producing only electric vehicles in Europe by 2030, former head of Europe said in September |
11.1% in Europe |
|
Volvo Cars |
– To sell purely battery-powered vehicles from 2030 onwards |
– Aims for 90- 100% of its global sales volume by 2030 to consist of electrified cars, meaning mix of both fully electric and plug-in hybrid models |
20% |
Battery-electric vehicles still only account for a fraction of sales at Europe’s top automakers, with most staying below the EU average of 16% between January and September 2025.
WHERE DID IT ALL GO WRONG?
Demand is rising for EVs in Europe, but not at the pace carmakers had once planned for, with ACEA’s data showing a market share of 16% for battery electric vehicles in the first 10 months of the year, up from 13% a year previously.
Charging anxiety remains an issue for consumers, with central and eastern Europe behind on infrastructure, while high electricity costs are a concern in Germany.
Reporting by Christoph Steitz and Ilona Wissenbach in Frankfurt, Christina Amann and Rachel More in Berlin, Gilles Guillaume in Paris, Giulio Piovaccari in Milan and Philip Blenkinsop in Brussels; Editing by Jan Harvey
