EU Set to Push Back Auto-Climate Target Announcement Amid Growing Industry Pressure

Brussels faces mounting calls from major car-producing nations to ease its 2035 combustion-engine phaseout, prompting expectations of a delay in the EU’s long-awaited climate roadmap for the automotive sector.

The European Commission is expected to postpone the release of its updated climate target plans for the auto industry, according to industry officials who say pressure has intensified from governments and manufacturers seeking more flexibility in the transition away from combustion-engine vehicles.

The announcement was originally scheduled for December 10, forming part of a comprehensive package intended to support Europe’s automotive sector as it adapts to stricter emissions policies, rapidly rising electrification costs, and competitive pressure from Chinese EV makers.

Sources within the industry indicate that Brussels is now likely to delay the date, reflecting both political sensitivities and ongoing discussions over whether the 2035 phaseout of new combustion-engine sales should be modified to incorporate hybrid technologies or other transitional solutions.

European automakers, backed strongly by Germany, have been calling for additional breathing room as they balance the expensive scale-up of electric vehicle production with tightening market conditions and the impact of tariffs on imported EVs, particularly from China.

The EU’s executive arm has been evaluating a possible revision to its climate rules, including whether to grant exemptions or transitional pathways for plug-in hybrids or advanced combustion systems that meet stringent efficiency criteria.

According to insiders, the push for more flexibility gained further momentum after the German government formally appealed for consideration of hybrid vehicles and highly efficient combustion engines in future regulatory frameworks.

EU transport officials recently signaled publicly that the automotive package might be postponed until early January, citing the complexity of negotiations and the need for a policy balance that maintains climate ambition while supporting industrial competitiveness.

Industry groups argue that the speed and cost of shifting entirely to electric mobility pose challenges for manufacturers already navigating tight margins, global supply-chain disruptions, and the need for large-scale investments in battery technology and charging networks.

Auto executives say Europe risks losing ground if it does not create a more adaptable regulatory environment that allows companies to remain competitive against global rivals who face fewer constraints and operate with greater state support.

Supporters of maintaining the 2035 target warn that weakening the deadline could slow Europe’s climate progress and undermine the bloc’s leadership in sustainability policy, particularly as global climate negotiations continue to emphasize aggressive emissions reduction timelines.

However, critics of the current rule argue that hybrid technologies still offer significant emissions reductions and could serve as an important bridge until electric vehicle ownership becomes more affordable and infrastructure is more widely accessible across the region.

The debate comes at a pivotal moment for Europe’s automotive sector, which remains one of the continent’s most important economic engines, representing millions of jobs and substantial contributions to industrial output and exports.

Policymakers continue to weigh environmental commitments against economic realities, especially amid concerns about European competitiveness as China rapidly expands its global EV presence with lower-priced offerings.

With member states divided over the pace and structure of the energy transition, the Commission is now under pressure to craft a policy package that is both climate-aligned and politically viable, leaving many expecting the timeline to slip beyond December.

Officials involved in the talks say the delay could allow for further consultation with national governments and industry representatives, improving the chances of reaching a balanced outcome capable of commanding broad support.

As negotiations continue, automakers and suppliers are closely watching for signals that will shape their investment strategies over the next decade, particularly in areas like electrification, hybrid systems, and advanced engine development.

The expected postponement underscores the challenges of implementing ambitious climate reforms in an industry undergoing profound technological and economic transformation, with stakeholders seeking clarity as they plan long-term production capacities.

While the updated package is still anticipated within weeks, the evolving internal debate highlights the delicate political environment surrounding Europe’s transition to a cleaner transport future.