Brussels: The European Union is expected to announce a special support package for the region’s auto industry, as pressure builds from carmakers and several member states to revise the planned phase out of new petrol and diesel vehicles by 2035. According to sources familiar with the discussion, the European Commission is working toward releasing the package as early as December 16, although the date could still shift.
The package is likely to include financial support, manufacturing incentives and policy adjustments aimed at helping the European car industry transition to cleaner technology. One of the most closely watched elements is whether the EU will soften or delay the 2035 deadline for ending sales of new internal combustion engine vehicles.
Several governments and industry leaders have argued that the policy needs more flexibility. They have pointed to slower than expected growth in electric vehicle sales, high production costs, infrastructure gaps and competition from Chinese carmakers entering European markets with lower priced models. In recent weeks, six EU member states publicly requested changes to the plan, asking that hybrids and other lower emission technologies continue beyond 2035.
Automakers, including Stellantis, have also voiced support for easing the transition timeline. Company leaders say more gradual policies would protect jobs and give manufacturers time to expand battery supply chains and charging infrastructure.
However, climate focused governments and environmental groups warn that any delay could undermine Europe’s climate goals and weaken global momentum toward cleaner transport. They say the phaseout is necessary to cut pollution and reduce the impact of fossil fuels.
EU Transport Commissioner Apostolos Tzitzikostas said earlier this week that discussions are ongoing and final decisions have not been made. Some officials have suggested that the announcement could be postponed until January if negotiations take longer.
The future of the policy will likely have a major effect on Europe’s automobile sector, which supports millions of jobs across the region. As the debate continues, both industry groups and environmental advocates are waiting for final details to understand how the next phase of Europe’s automotive transition will unfold.