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EU Auto Package May Be Postponed, Threatening 2035 EV Deadline

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  Published in Automotive and Transportation on Friday, December 26th 2025 at 13:07 GMT by reuters.com

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EU Faces Potential Delay in Landmark Auto Package as 2035 Carbon‑Neutral Target Comes Under Pressure

Reuters, 2 December 2025 – In a series of developments that could reshape the future of the European automotive sector, Brussels has signaled that the much‑anticipated “auto package” – a suite of regulatory measures aimed at phasing out new gasoline and diesel cars by 2035 – might not be adopted in its current form until later than originally planned. The proposal, which sits at the heart of the European Union’s “Fit for 55” climate agenda, has ignited a spirited debate among policymakers, industry leaders, environmental NGOs and consumer groups.

1. The Auto Package at a Glance

The auto package is a cornerstone of the EU’s strategy to meet its net‑zero emissions goal by 2050 and cut transport‑related emissions 55 % by 2030. The package, which is slated to be formally adopted in the European Parliament’s upcoming vote, contains several key measures:

The package is part of the broader “Fit for 55” package – the EU’s legislative package designed to bring the bloc’s emissions down by 55 % by 2030 – and dovetails with the European Green Deal. The automotive sector has long been identified as one of the biggest hurdles to achieving these goals, with the EU accounting for roughly 30 % of global car sales.

2. Why a Delay Is On the Table

Recent internal deliberations within the European Commission and the European Council have sparked concerns that the auto package may not reach a final vote until mid‑2026 or even early 2027. The following factors are driving the pushback:

1. Supply‑Chain Constraints
   The automotive industry has already faced a wave of semiconductor shortages, raw‑material price spikes, and logistics bottlenecks in the wake of the pandemic. A sudden transition to 100 % electric vehicles (EVs) by 2035 would require a massive, coordinated ramp‑up in battery production, which several member states fear is not feasible in the short term.

2. Economic Impact on Member States
   Countries with significant automotive manufacturing footprints – notably Germany, France, the Netherlands, and Poland – are concerned about the potential loss of jobs and the impact on regional economies. The European Commission’s “Impact Assessment” suggests that the auto package could cost up to €30 billion in lost GDP in the first decade, unless mitigated by investment incentives.

3. Political Negotiations
   Within the European Parliament, the Transports and Tourism Committee (TRAN) has called for a more gradual phase‑out of ICE vehicles, citing the need for consumer confidence and infrastructure readiness. Meanwhile, the European Council’s summit is expected to weigh in on the alignment of the auto package with other policy areas, such as digital transformation and industrial policy.

4. Consumer Sentiment
   A recent Eurobarometer survey indicated that while 68 % of EU citizens support the 2035 ban, 23 % are concerned about the affordability of EVs and the availability of charging stations, especially in rural areas. Critics argue that a rushed transition could erode public support for the wider climate agenda.

3. Reactions from Stakeholders

EU Leadership
- Ursula von der Leyen (Commission President) emphasized that “the auto package is non‑negotiable for the EU’s climate commitments.” However, she acknowledged the need for a realistic implementation timeline that “balances ambition with feasibility.” - Josep Borrell (High Representative for Foreign Affairs and Security Policy) indicated that the EU would explore “flexible mechanisms” to accommodate member states that face specific challenges.

Industry Bodies
- The European Automobile Manufacturers Association (ACEA) expressed caution, urging the Commission to “provide clearer road‑map milestones and funding mechanisms.” ACEA also highlighted the role of public‑private partnerships in accelerating charging infrastructure deployment. - Auto‑sector lobby groups in Germany and the Netherlands called for an extension of the 2035 target to 2040. They argued that this would allow a more gradual transition to EVs without jeopardizing the “Made in Europe” manufacturing advantage.

Environmental NGOs
- Friends of the Earth Europe and Greenpeace welcomed the potential delay as “a chance to ensure that the transition is socially inclusive.” They reiterated that the 2035 deadline is essential for the EU to meet its Paris‑Agreement commitments.

Consumer Groups
- Consumer Rights Association (CRA) urged the Commission to introduce “affordable EV incentives” and expand the “Charging Subsidy Scheme” for low‑income households. CRA also called for greater transparency on the cost of transitioning to EVs.

4. Economic and Environmental Implications

The European Commission’s Impact Assessment forecasts that a delayed implementation would not compromise the EU’s 2030 CO₂‑reduction targets, provided that supplementary measures (e.g., stricter tailpipe standards, stronger battery recycling directives) are adopted promptly. Yet environmentalists warn that any postponement could “push the EU farther away from its Paris‑Agreement trajectory.”

5. Next Steps in the Legislative Process

• European Parliament: The TRAN Committee is set to debate the auto package on 12 December. Members will vote on amendments that could either accelerate or delay the 2035 ban, as well as on the financing mechanisms.
• European Council: A summit scheduled for 24 December will decide whether to approve the package in its current form or as a revised version. National leaders are expected to negotiate the balance between economic stability and climate urgency.
• Commission’s Implementation Plan: The Commission will release a detailed implementation roadmap by June 2026 that outlines the timeline for each regulatory measure, investment requirements, and monitoring metrics.
• Stakeholder Consultation: A series of public consultations will be held in January 2026, allowing NGOs, industry groups, and consumer associations to submit feedback on the draft roadmap.

6. Broader Context and Links

• The auto package is a central pillar of the EU’s “Fit for 55” climate package, which also includes proposals on energy taxation, renewable energy targets, and electricity market liberalization.
• The European Green Deal sets the overarching goal of becoming the world’s first climate‑neutral continent by 2050. The auto package’s success will be measured against the net‑zero and climate‑action indicators in the European Green Deal Report.
• Industry analysts point to the US EV market as a benchmark: the U.S. has already introduced a $7.5 billion incentive package for EV purchases and charging infrastructure. The EU’s own Electric Mobility Fund is expected to match this scale.
• Related policy documents include the European Commission’s 2025 “CO₂ Emission Standards” for cars, the EU Battery Directive 2024 (which sets battery safety and recycling standards), and the “Charging Infrastructure Directive” (proposed to harmonise charging standards across member states).

Bottom Line
The EU’s decision to possibly delay the auto package reflects a classic tension between ambition and pragmatism. While the 2035 ban on new ICE cars remains a bold statement of the EU’s climate commitment, the path to achieving it may need to accommodate supply‑chain realities, economic repercussions, and consumer acceptance. The next few months will be pivotal as lawmakers, industry, and civil society weigh in on the most sustainable and feasible route to a zero‑emission automotive future. Whatever the outcome, the auto package will continue to be a litmus test for the EU’s ability to balance environmental urgency with economic resilience.