The combustion engine survives after all, beyond 2035

The European car world is being shaken up considerably today. What had long been considered inevitable, a full ban on new cars with combustion engines from 2035, is now up in the air. In fact: Europe has officially decided that combustion engines may continue to exist after 2035. But not without conditions.

Political pressure breaks through: Germany forces the turnaround

The turnaround was accelerated by a letter from German Chancellor Friedrich Merz to Ursula von der Leyen. His message: a total ban on combustion engines is economically, industrially and socially indefensible. That letter was “very well received” in Brussels, confirms EU Commissioner Apostolos Tzitzikostas.

Result: the combustion engine may continue after 2035, provided it runs on low-emission fuels, such as synthetic petrol, biofuels or HVO100.

The technology is ready: eFuels and HVO100

The EU now officially recognises that sustainable fuels form an alternative to full electrification.

HVO100 is the best-known example: diesel made from recycled vegetable oils and fats. BMW already uses it in its German factories and claims up to 90% less CO₂ emissions.

Porsche goes even further. In Chile, the brand has been producing synthetic eFuel since 2022, made from water and CO₂ using wind energy, in theory almost climate-neutral.

The question now becomes: can all of this be rolled out on time, at scale and affordably?

The decision on the “car package” is postponed

Brussels was due to announce the full set of regulations on 10 December, but that package is being pushed back to later this month.
Key open questions remain:

• Will plug-in hybrids continue to exist after 2035?

• May range-extender systems remain, as long as they use sustainable fuels?

• What happens to PHEVs that still fill up with fossil fuel?

There is a good chance that only systems running on renewable fuel will be allowed to remain. Anything running purely on fossil fuels will come under pressure again.

Infrastructure is the real challenge

The decision sounds optimistic, but reality gets tough. Building a European distribution chain for eFuels and biofuels in 9 years? Improbably ambitious.

Brussels admits this itself. But because the ban only applies to the sale of new cars, filling up with regular petrol or diesel remains simply allowed for all existing vehicles.

So nothing changes for what is already on the road today.

The EV market is growing, but not fast enough

Electric cars are increasing (18.3% market share in 2025) but hybrids remain dominant with 34.7%. Plug-ins reach 9.4% and, for the first time, outsell diesels.

The move to “100% electric” by 2035 simply proved unrealistic. Europe is once again opting for technological neutrality: EVs remain important, but not exclusive.

Not everyone is happy

Some brands (Volvo and Polestar at the forefront) want the original 2035 ban to stand.
According to them, this new compromise undermines the climate targets and creates uncertainty for the industry.

But reality is stronger than ideology.
Europe is finally choosing flexibility, innovation, multiple solutions side by side, and the preservation of an industry that forms the backbone of the European economy.