Rule faces potential changes

The rule aiming to stop the sale of new gasoline and diesel vehicles in Europe may be adjusted as the European Parliament considers a compromise. The current law requires all new cars sold from 2035 to have zero tailpipe emissions, effectively pushing the market toward electric or hydrogen vehicles and leaving hybrids out.

Proposed emission reduction

In December 2025, the European Commission suggested a 90% reduction in emissions compared to 2021, with the remaining 10% offset by efforts like using low-carbon steel or alternative fuels. This would allow rechargeable hybrids and electric models with range extenders to continue being sold after 2035, as well as some traditional vehicles.

Parliament seeks further changes

The European Parliament wants to provide its input and push the proposal further. On October 20, three major political groups—conservative PPE, social democrats, and centrists of Renew—agreed on an 87.5% reduction in average tailpipe emissions by 2035, with low-carbon steel counting for an additional 7.5%. Light commercial vehicles would have an 80% reduction.

Compromise needs approval

The compromise still needs approval through several steps. On October 22, the Parliament's transport and industry committees approved the amendments. The PPE, Renew, and S&D MEPs supported the changes, while the Greens and radical right opposed them. The key vote will take place on November 4 in the environment committee.

Franco-German agreement

Governments have already started moving forward. Paris and Berlin reached an agreement on the European automotive package. They support a 90% reduction in emissions by 2035 but without compensation mechanisms. This means manufacturers wouldn’t need to use green steel or renewable fuels to meet targets.

European preference for local production

The Franco-German agreement also introduces a preference for European-made vehicles. Electric cars assembled in the EU would receive super-credits. Small electric vehicles under 4.20 meters would count as 1.4 cars in the calculation, with more if they use European low-carbon materials.

Local production requirements

Starting in 2028, cars would need to be assembled in Europe with at least 70% of the parts’ value produced locally, excluding the battery. Batteries must gradually include more European components, especially the chemical core, known as cells. These rules aim to protect European suppliers from Asian competition.

Short-term impact remains unchanged

For now, nothing changes in dealerships. The rules being discussed target 2030 and 2035, and the final text is not yet set. Even with these adjustments, electric vehicles will remain the norm. However, the door is not completely closed on hybrids and some traditional engines, as a customer could still buy a new rechargeable hybrid after 2035.