EU set to soften car engine ban, with effects on Türkiye

ISTANBUL

The European Union is preparing to soften its plan to ban the sale of new internal combustion engine (ICE) vehicles from 2035 — a shift that could have significant consequences not only for Europe but also for the global automotive sector, including Türkiye.

The European Commission is expected to announce on Dec. 16 a set of measures relaxing the 2035 ban on new petrol and diesel car sales. Europe’s embattled auto industry and its supporters have long pushed Brussels to ease the restrictions, though they remain divided on what form the adjustments should take.

In 2023, despite resistance from Germany, the commission confirmed that sales of new vehicles powered by internal combustion engines would be prohibited from 2035. The decision also covered hybrid models combining combustion engines with battery power. The ban is considered a cornerstone of the EU’s strategy to reach carbon neutrality by 2050.

Although the 2023 announcement included a scheduled review for 2026, mounting pressure from automakers and national governments prompted the Commission to bring forward proposed revisions to the end of 2025. These proposals will be submitted to the European Parliament for evaluation.

For critics of the ban, the debate has moved beyond simply postponing the 2035 deadline. Many are now calling for broader flexibility within the framework.

Carmakers want continued approval for the sale of hybrids with rechargeable batteries or vehicles equipped with range extenders — small combustion engines that recharge the battery rather than drive the wheels. Germany supports this approach, as do several Eastern European countries hosting German automotive production facilities.

Impact on Türkiye’s automotive sector

Türkiye exports nearly 80 percent of its automotive production to the EU. Any relaxation of the 2035 target could extend the export window for ICE and hybrid models manufactured in Türkiye.

A softer EU timeline would also allow global brands operating in Türkiye to plan their electric transition more gradually, reducing the risk of abruptly shutting down existing combustion‑engine production lines.

The automotive industry provides direct and indirect employment to hundreds of thousands of people in Türkiye. A slower phaseout of combustion engines could ease short‑ and medium‑term pressure on employment.

Electric vehicles currently account for only 18 percent of total vehicle sales in Türkiye. Greater flexibility in the EU could keep petrol and hybrid models available in the domestic market for a longer period.

Türkiye largely aligns its automotive emissions and technical regulations with EU legislation. A more gradual approach in Brussels would give Türkiye additional room to manage its own transition with a more realistic and phased timeline.