BRUSSELS, 27 August 2025 — Europe’s two main automotive trade bodies have called for the European Union’s vehicle CO₂ standards to be revised, arguing that targets for 2030 and 2035 are no longer achievable under current market and geopolitical conditions.
In a letter to European Commission President Ursula von der Leyen, Ola Källenius, chief executive of Mercedes-Benz Group, and Matthias Zink, the Schaeffler board member responsible for powertrain and chassis, said manufacturers remain committed to the EU’s 2050 net-zero objective but face structural headwinds. These include heavy reliance on Asian supply chains for batteries, uneven rollout of charging infrastructure, higher production costs and the impact of U.S. tariffs.
The current EU framework requires a 55% reduction in average CO₂ emissions from new cars by 2030 compared with 2021 levels, and 50% for vans, moving to a 100% reduction for both from 2035 — effectively mandating only zero-emission new vehicles from that year. According to the Commission, the 2035 fleet-wide target for cars and vans is 0g CO₂/km.
Battery-electric vehicles account for roughly 15% of new EU car registrations, with vans at around 9%, underscoring the scale of the transition still required before the 2030 and 2035 milestones. “Meeting the rigid car and van CO₂ targets for 2030 and 2035 is, in today’s world, simply no longer feasible,” the letter states.
While stating that electric vehicles will “lead the charge”, the associations argued for a broader technology pathway that keeps options open for plug-in hybrids, range extenders, highly efficient internal-combustion engines, hydrogen and so-called decarbonised fuels. They also called for a review of CO₂ regulation for heavy-duty trucks and buses.
Von der Leyen is due to host automotive executives on 12 September for talks on the sector’s outlook. The industry faces intensifying competition from Chinese electric-vehicle makers and trade frictions with the United States, factors the associations say complicate investment decisions and planning for model line-ups through the next decade. The European Automobile Manufacturers’ Association (ACEA) described the September meeting as an opportunity to “recalibrate” policy to reflect shifting market and geopolitical realities.
The Commission has already shown limited flexibility at the near-term end of the timetable, granting automakers more time in March to meet emission-reduction requirements that were initially set for 2025. At the political level, members of von der Leyen’s centre-right European People’s Party have pressed for the 2035 combustion-engine phase-out to be withdrawn, heightening uncertainty over the policy path.
Regulatory clarity is a central concern for manufacturers and suppliers managing multi-year product cycles. Powertrain strategies — including the pace of ICE phase-out, battery sourcing, and charging investment — hinge on the durability of the 2030 and 2035 targets. The trade bodies’ letter contends that legal mandates and penalty regimes alone will not deliver the transition without parallel measures on infrastructure, raw materials and energy costs
The 2035 zero-emission requirement for new cars and vans was adopted to align road transport with the EU’s wider climate objectives. The rules, set out under Regulation (EU) 2019/631 as amended, are accompanied by periodic reviews to assess technological and market developments. Any formal change would require a legislative proposal from the Commission and agreement by the European Parliament and member states.
For now, industry and policymakers are preparing for the 12 September discussion, with manufacturers likely to push for a technology-neutral approach and adjustments to interim targets, and the Commission weighing those requests against climate commitments and the pace of infrastructure deployment. The outcome will signal how far the EU is willing to modify the trajectory for new-vehicle emissions through the next decade.
