The European Union (EU) will lift a ban on the production of new petrol cars and vans by 2025, which was introduced in 2022. When passed, the ban was to encourage domestic automakers to manufacture electric vehicles (EVs), increase purchases and reduce carbon emissions.
The ban was lifted after German and Italian automakers pressured the EU not to continue with it due to declining EV sales. The combination of high EV sales prices, concerns about range, low resale value and the end of EV purchase subsidies has led to a further decline in sales.
Instead, the EU is now targeting a 90% reduction in exhaust emissions from 100%. The production of PHEV and ICE hybrid vehicles will now be allowed as long as manufacturers meet the above targets. In addition, €1.8 billion will also be provided to develop a battery production network in the EU so that it is no longer dependent on imports from China, which holds more than 80% of the EV battery market.
In addition, the use of low-carbon steel and more environmentally friendly bio-fuel support will also be allowed, not just full EVs.