【Wen/Observer Net, Wang Kaiwen】Amid pressure on the European automotive industry, the European Commission on December 16th released a comprehensive plan for the automotive industry, proposing to relax the requirements related to the 2035 "fuel vehicle ban".

Reuters cited analysts and experts on the 18th, stating that the EU's new plan may give traditional European automakers more time to close the gap with Chinese automakers, but in the long term, the future still belongs to electric vehicles.

Bloomberg published an article pointing out that the EU's plan cannot give European automakers a competitive advantage over China, but instead sends the wrong signal that they can slow down their investment in electric vehicles.

At the same time, the Financial Times noted that as the details of the plan gradually become clear, some European automotive industry players feel something is off. They warned that the "catastrophic" changes in the plan would make European car prices even more expensive.

"The naivety of Europe is heartbreaking."

In 2023, the EU decided to completely ban the sale of new fuel-powered passenger cars and small commercial vehicles that cause carbon emissions from 2035 onwards. However, following the persistent lobbying by the European Automotive Industry Association, the latest plan announced by the EU has adjusted the 2035 "zero-emission" target for new vehicles to a 90% reduction compared to 2021 levels.

The report pointed out that the EU's move is intended to help European automakers better compete with rapidly developing Chinese rivals.

The new plan allows the EU to continue selling plug-in hybrid vehicles, range-extended electric vehicles, and even traditional internal combustion engine vehicles after 2035. It also proposes to establish a new category of small pure electric vehicles and provide additional points for vehicles manufactured in Europe.

Industry analysts point out that the EU's new plan "basically meets" the demands of European automakers' lobbying.

"The Commission has allowed the European automotive industry to make choices and gain competitive opportunities," said Phil Dunne, director general of Grant Thornton Stax, a strategic consulting company. He expressed hope that the European automotive industry could catch up with China through cost-competitive electric vehicles.

Reuters pointed out that if the EU implements the new plan, it means that premium brands like Mercedes-Benz and BMW will have more time to sell plug-in hybrid vehicles before transitioning to full electrification. Meanwhile, European automakers such as Stellantis and Renault, which have a range of small models, are expected to benefit from subsidies for small electric vehicles.

On June 4, 2025, in Rastatt, Germany, Mercedes-Benz factory production line. IC Photo

Facing strong competition from Chinese electric vehicles, to protect European local brands, the EU started imposing high tariffs on Chinese-made electric vehicles last year. However, this did not stop Chinese car brands from expanding in Europe, as plug-in hybrid models imported from China were not affected by the new tariffs; in countries like Poland, where electric vehicle sales are low, Chinese internal combustion engine vehicles are still popular.

AlixPartners, a management consulting company, previously predicted that by 2035, the share of pure electric vehicle sales in Europe would be only 62%, and the company does not believe the relevant ban can be enforced. After the EU announced the new plan on the 16th, AlixPartners partner Nick Parker stated that he believes the company's prediction will not change significantly.

Reuters believes that slowing down the pace of electrification gives the EU more time to build charging infrastructure, which is one of the main reasons for the slow adoption of electric vehicles in the EU.

Industry data shows that the sales of pure electric vehicles in the EU increased by 25.7% in the first ten months of this year, accounting for 16.4% of total car sales. In Southern and Eastern Europe, the share of electric vehicle sales is even smaller.

The report points out that the change in EU policy is a blow to companies that have already invested hundreds of billions of euros in electric vehicle design and capacity expansion.

The electric vehicle industry has warned that the EU's relaxation of emission targets may weaken investment, including investment in key charging infrastructure, and further lag behind China in the transition to clean driving.

"Reducing the clear 100% zero-emission target to 90% may seem insignificant, but if we retreat now, it will not only harm the climate, but also weaken Europe's competitiveness," said Michael Lohscheller, CEO of Swedish electric vehicle manufacturer Polestar.

William Todts, executive director of the clean transportation advocacy group T&E, believes that the EU is procrastinating, while China is accelerating forward. "Sticking to internal combustion engines will not revive European car manufacturers," he said.

"The naive understanding of the impact of Chinese exports on Europe is heart-wrenching," Bloomberg published an article on the 18th, titled. The article states that the EU's new plan means the 2035 "fuel vehicle ban" has effectively been abandoned, although the ban failed to spark a real electric vehicle boom in Europe, abandoning the ban will not ensure the future of the European automotive industry, nor solve the intense competition from China.

The article points out that abandoning the "fuel vehicle ban" sends the wrong message that automakers can slow down their investment in electric vehicles.

"This is not the way to make long-term capital investment plans."

The Financial Times reported on the 18th that relaxing the 2035 "fuel vehicle ban" should have been a hard-earned victory for European automakers after months of lobbying. However, as the details of the plan gradually became clear, European automotive industry players found that achieving the EU's new goals was not easy, because the package required the use of green steel and "European-made" parts, which are complex and costly.

"In a critical phase of the European economy, this package from Brussels is a disaster. On the surface, it seems open, but in reality, it is full of obstacles and may be ineffective," said Hildegard Müller, president of the German Automotive Industry Association.

Stellantis stated that the EU's plan did not address the challenges of electrifying light commercial vehicles and did not provide enough flexibility to meet the 2030 emission targets.

Automotive industry analyst Matthias Schmidt predicts that due to the additional costs brought by green steel and renewable fuels, fuel vehicles will "become a luxury Swiss watch for the automotive industry."

There is also significant division within the EU regarding the new plan.

Reuters mentioned that Germany and Italy have been vigorously lobbying to overturn the "fuel vehicle ban", fearing that their domestic automakers will lose to competitors, especially Chinese automakers, during the transition to new energy vehicles. However, Spain opposes this, as the country has already entered the stage of automobile transformation, with electric vehicle and battery manufacturers investing in factories in the country.

In fact, this is not the first time the EU has relaxed carbon emission rules in the automotive industry. In March of this year, the European Commission announced a three-year window for European automakers, allowing them to meet carbon emission targets within three years rather than one year.

Before the EU announced the new plan on the 16th, Ford CEO Jim Farley had urged Brussels to stick to a policy once chosen, rather than changing it every few months.

"This is not the way to make long-term capital investment plans," Farley said. "We need certainty."

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Original: toutiao.com/article/7585151852577145398/

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