T&E Warns: Keeping Internal Combustion Engines Post-2035 Will Undermine EU Auto Industry

European automakers are facing significant challenges in promoting battery electric vehicles (BEVs) as regulatory demands for decarbonisation grow stronger. In the third quarter of 2024, a sense of pessimism led many manufacturers to scale back their previously ambitious sales projections. Additionally, the industry is confronting competition from China, where BEVs tend to be more affordable and technologically advanced than those produced domestically. In response, the EU is planning to introduce import tariffs to create a more equitable market, though these measures have not been well-received by the automakers.

During the Paris Motor Show on October 15, 2024, BMW CEO Oliver Zipse shared his thoughts on revitalising the region’s decarbonisation efforts. He suggested that modifying the EU’s goal of achieving 100% BEV sales by 2035 to permit the ongoing use of ICEs could enhance Europe’s competitiveness and counterbalance the advantages held by Chinese manufacturers. “To maintain a successful trajectory, a technology-neutral approach within the policy framework is crucial,” he stated, as reported by Reuters.