Flexibility for Combustion and Hybrid Cars After 2035

The European Commission has adjusted its automotive strategy, keeping the 2035 decarbonization target but allowing limited flexibility. Carmakers may sell combustion and hybrid vehicles after 2035 if CO2 emissions are cut by at least 90% compared with 2021, with the remaining 10% offset through credits earned via low-carbon EU-made steel and renewable fuels. Transport Commissioner Apostolos Tzitzikostas noted non-electric models could account for up to 30–35% of post-2035 sales, benefiting premium manufacturers with plug-in hybrid portfolios. The package also emphasizes technological neutrality and stronger “Made in Europe” requirements, particularly for the battery value chain.