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Europe Doubles Down on Electric Cars Despite Industry Fears

Brussels has made its position clear: Europeโ€™s future lies in electric cars. At a closed-door summit on Friday, EU leaders and car executives wrestled with the continentโ€™s troubled auto sector but left the 2035 ban on new combustion cars untouched.

A source close to the meeting told Euronews: โ€œNo matter what, the future is electric.โ€ The insider added: โ€œThe industry is extremely aware of the need to transition.โ€

European carmakers had gone into the talks pleading for more flexibility on CO2 targets. Yet the source insisted: โ€œEven if the Commission took down these targets, global competition would set them for the industry.โ€

Debate Over Deadlines

The EU wants climate neutrality by 2050. A big part of that plan is the 2035 deadline, when sales of new petrol and diesel cars will stop. Pressure has been growing to soften the target as sales falter and energy costs soar, but Brussels showed no sign of bending.

Audi CEO Gernot Dรถllner told Wirtschaftswoche: โ€œI know of no better technology than the electric car for advancing CO2 reduction in transportation in the coming years.โ€

He warned that constant debate about saving combustion engines was โ€œcounterproductive and unsettles customers.โ€

Michiel Langezaal, CEO of Fastned and president of ChargeUp Europe, added: โ€œEnsuring that Europe can lead the e-mobility transformation globally requires more than standing robustly by a roadmap. It requires industry to have the courage to approach the challenges we face with a growth mindset and focus on the actions needed to make the transition towards e-mobility a success for people, industry and the environment.โ€

The summit lasted three hours and was part of the Commissionโ€™s โ€œStrategic Dialogueโ€ on the future of the auto industry. It was the third meeting of its kind this year.

Industry Under Pressure

The European car sector employs more than 13 million people and contributes about 7% to EU GDP. Yet sales are slipping, Chinese rivals are gaining ground with state subsidies, and US tariffs are adding new pressure.

Back in April, EU industry chief Stรฉphane Sรฉjournรฉ warned that the car sector was โ€œin mortal danger.โ€ He added: โ€œThere is a risk that the future map of the global car industry will be drawn without Europe.โ€

Sigrid de Vries, director general of the European Automobile Manufacturersโ€™ Association (ACEA), told Euronews that electric adoption still lags. โ€œThe market share of battery electric passenger cars in EU-27 was at 15.6% and at 9% for vans. Widespread mass-market adoption has not happened yet. And it will not happen if we donโ€™t speed up the infrastructure and bring down the total cost of ownership.โ€

She accused governments of failing to act: โ€œGovernments and regulators have not invested in, nor demanded, sufficient levels of infrastructure and grid upgrades and incentives remain inconsistent. The consequence: the regulatory targets are no longer achievable.โ€

The Road Ahead

Carmakers say Europe must act faster if e-mobility is to succeed. They want stronger purchase incentives, fairer taxation, cheaper charging, and better access to cities for zero-emission vehicles.

They also call for massive investment in charging stations, especially for heavy trucks, alongside modernised grids and lower electricity prices. Without these steps, the 2035 target may remain a distant dream.


Will Europeโ€™s leaders move fast enough, or will global competitors seize the wheel of the future?
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Will Europeโ€™s leaders move fast enough, or will global competitors seize the wheel of the future?x

For more on Europeโ€™s climate targets, see Bloomberg coverage.

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