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EU may delay car industry package as 2035 engine ban debate grows

Proposals from the sector include the possible acceptance of CO2-neutral fuels and plug-in hybrid models after the deadline.

Rachana Saha December 05 2025

The European Commission may postpone the unveiling of its planned support package for the EU car industry, according to Reuters, which cited industry sources.

Carmakers are hoping the measures could open the way to revisiting the planned 2035 prohibition on sales of new combustion engine vehicles.

The Commission, the EU’s executive arm, had been expected to present the package on 10 December.

However, a source from Germany’s automotive sector told Reuters that this timetable would likely be pushed back.

A second industry source said there was a common view among carmakers that the Commission could release its proposals after 10 December rather than on that date.

The source added that there had been no official confirmation of any change to the schedule.

Earlier this week, EU Transport Commissioner Apostolos Tzitzikostas told Handelsblatt that publication of the package might be postponed until early January.

European manufacturers are urging Brussels to allow more flexibility around the 2035 combustion engine phase-out.

Proposals from the sector include the possible acceptance of CO₂-neutral fuels and plug-in hybrid models after the deadline.

The industry is managing an expensive transition to electric vehicles while competing with Chinese producers and dealing with tariffs that are putting pressure on profit margins.

Recently, German chancellor Friedrich Merz urged the European Commission to exclude plug-in hybrids and “highly efficient” combustion engines from the ban.

Tzitzikostas told the German business daily that the letter from the German chancellor had been positively received.

On 2 December, the European Commission said that all of its indicative dates remain subject to change.

“We are still receiving some input. We received the German contribution on Friday. We're still waiting for some others. It is an ongoing process and, in view of all input, a decision on the next steps will be made,” a Commission spokesperson told Reuters.

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