Finance
EU proposals set to limit EV sales from 2035, says campaign group
Published by Global Banking and Finance Review
Posted on February 2, 2026
2 min readLast updated: February 2, 2026
Quick Summary
EU's new proposals may limit electric vehicle sales post-2035, with potential impacts on emissions and carmaker finances.
EU's New Proposals May Restrict EV Sales Post-2035, Warns Campaign Group
Impact of EU Proposals on Electric Vehicle Sales
BRUSSELS, Feb 3 (Reuters) - Electric vehicles are likely to make up 85% of new car sales in the EU from 2035, based on its plans to drop an effective ban on new combustion-engine models, although that share could drop as low as 50%, clean transport advocacy group T&E said.
Criticism from T&E
Under pressure from carmakers, the European Commission in December proposed a 90% cut in CO2 emissions in 2035 from 2021 levels, instead of zero for all new cars and vans.
Financial Implications for Carmakers
T&E has criticised the EU's biggest retreat from its green policies in years, saying the proposals will allow continued sales of high CO2-emitting vehicles, while Chinese producers race further ahead in battery electric vehicles (BEVs).
Future of Combustion Engine Sales
The European Commission said in December that its plans would support sales of EVs in the EU and save vehicle makers 2.1 billion euros ($2.5 billion) over three years, freeing up resources for innovation and new electric models.
In a report published on Tuesday, T&E said carmakers could sell anywhere between 5% and 50% of non-BEVs after 2035, the lowest share based on a carmaker continuing to sell high emissions internal combustion engine cars, the highest share if it sells the most efficient extended-range plug-in hybrids.
T&E said the most likely figure was 15%, with sales of some combustion engine and some plug-in hybrid vehicles.
Together with an extended time period to comply with 2030 targets, the report said car CO2 emissions would be 10% higher between 2025 and 2050 than under current tighter rules.
T&E said there was also a risk of further weakening of rules when the proposals came up for debate in the European Parliament and in the Council, the grouping of EU governments.
Both will need to approve the changes.
($1 = 0.8474 euros)
(Reporting by Philip Blenkinsop; Editing by Alexander Smith)
Key Takeaways
- •EU proposals may limit EV sales from 2035.
- •T&E criticizes EU's retreat from green policies.
- •Carmakers might save 2.1 billion euros over three years.
- •Non-BEV sales could range from 5% to 50% post-2035.
- •Potential for further rule weakening in EU Parliament.
Frequently Asked Questions about EU proposals set to limit EV sales from 2035, says campaign group
1What is an electric vehicle?
An electric vehicle (EV) is a type of vehicle that is powered by electricity, using batteries instead of traditional fuel sources like gasoline or diesel.
2What is the European Commission?
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the EU's day-to-day operations.
3What are CO2 emissions?
CO2 emissions refer to the release of carbon dioxide into the atmosphere, primarily from burning fossil fuels, which contributes to climate change.
4What is a combustion engine?
A combustion engine is an engine that generates power by burning fuel, such as gasoline or diesel, to create mechanical energy.
5What is the impact of financial implications for carmakers?
Financial implications for carmakers involve the costs and savings associated with regulatory changes, which can affect their profitability and investment in new technologies.
