Who benefits from the EU decision on vehicles? - Easing measures for internal combustion cars harms the European market
German automakers have welcomed the European Commission's decision to postpone the ban on internal combustion engines until 2035. But the change gives Chinese manufacturers time to advance even further, both in Europe and in emerging markets.
The EU executive argues that the car package balances a strong stance on climate change and helping European industry remain globally competitive. But left-wing politicians and analysts say it solves nothing.
“The package does not address any of the structural problems of European car manufacturers in Europe or globally. There is a technological gap between European and Chinese car manufacturers,” they explain.
The European industry is facing a number of problems, including exclusion from the Chinese market as consumers turn to domestic brands that offer better electric vehicles. Manufacturers are also grappling with sluggish sales at home and a transatlantic trade war with the US administration of Donald Trump.
The Commission reduced the 2035 emissions target from a 100% reduction compared to 2021 levels to 90%, saying the remaining 10% should be offset through investments in green steel and alternative fuels.
One of the sector's biggest demands was to continue producing hybrid electric cars, which have an electric motor and a traditional internal combustion engine, even after 2035. The EU executive agreed, allowing hybrid cars, clean internal combustion engines and small combustion engines that give batteries more autonomy.
The move risks encouraging manufacturers to continue investing in internal combustion engines or hybrid vehicles, rather than catching up with China's pace in clean electric vehicles.
"This would hurt European competitiveness and essentially help China advance. It's a Christmas present for the Chinese car industry," experts say.
Last year, the Commission imposed new tariffs on electric vehicles made by Beijing. But instead of leaving the European market, Chinese brands are overcoming this barrier by shipping hybrid cars favored by European consumers.
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