The European Union has reversed course on its 2035 ban of new petrol and diesel car sales, allowing manufacturers to continue selling hybrid and internal combustion engine (ICE) vehicles beyond that date. This decision, announced on December 16, 2025, contrasts sharply with the United Kingdom’s continued commitment to its own phased ban: pure-petrol and diesel vehicles by 2030, and all non-zero-emission models by 2035. The move signals diverging strategies between Europe and the UK on the future of automotive emissions.
EU’s Revised Approach: Flexibility with Conditions
The EU’s initial 2035 ban aimed for a fully electric or hydrogen-powered new car market. However, the revised plan now permits plug-in hybrids, full hybrids, mild hybrids, and traditional ICE vehicles to remain on sale, albeit capped at 10% of each manufacturer’s total sales. To compensate, companies must offset emissions through sustainable manufacturing practices – such as using low-carbon steel – or by utilizing biofuels and e-fuels.
Additionally, the EU will introduce “super credits” for smaller electric cars (under 4.3 meters long), allowing manufacturers to count each one as 1.3 vehicles towards emissions targets. The quota for electric commercial vehicles has also been lowered from 50% to 40% post-2035, while the Commission pledges €1.8 billion in investment to bolster EU battery production through interest-free loans.
Industry Reactions: Divided and Uncertain
The automotive industry’s response has been mixed. Some manufacturers, like Polestar, strongly oppose the reversal, arguing that electrification is the only viable path forward. CEO Michael Loscheller condemned the decision as a step backward, stating that it prolongs outdated industries at the expense of future growth.
Conversely, other European automakers, including Renault, welcome the flexibility, citing the need to compete with cheaper Chinese rivals and navigate increasingly strict regulations. Renault CEO Francois Provost emphasized the importance of technological neutrality, suggesting that advanced hybrid solutions should remain an option.
Ford has already announced plans to scale back its EV investments due to weak demand and regulatory changes, a trend likely reinforced by the EU’s decision. The company is expected to continue relying on partnerships with Renault and Volkswagen for electric vehicle architecture rather than developing its own dedicated platform.
UK Stays the Course, But Political Winds Shift
The UK Government maintains its 2035 deadline for phasing out all non-zero-emission vehicles. The Department for Transport reiterated its commitment, though full and plug-in hybrids will still be allowed until 2035 under the current plan.
However, the Conservative Party has signaled a potential shift if it wins the 2029 general election, with leader Kemi Badenoch advocating for scrapping the ban altogether, calling the ZEV mandate “destructive.”
Despite a 26% growth in electric car sales in 2025, the rate has slowed in recent months (3.6% in November), and manufacturers are struggling to meet the mandated ZEV quotas (28% in 2025, 33% in 2026). Contradictory government policies, such as the extended £3,750 Electric Car Grant alongside the proposed per-mile eVED tax, further complicate the transition.
Octopus Electric Vehicles founder Fiona Howarth warns that reversing course on the UK’s EV ambitions would damage investor confidence, undermining the credibility of the regulatory framework.
In conclusion, the EU’s shift toward flexibility contrasts with the UK’s steadfast commitment to its EV transition targets, creating a divergence in automotive policy. While manufacturers grapple with evolving regulations and fluctuating demand, the long-term implications of these decisions remain uncertain for both markets.
