It’s not sure, but according to the German weekly Der Spiegel, the European Union is now considering allowing plug-in hybrid vehicles and range-extender electric vehicles (EVs with a small auxiliary petrol engine to recharge the battery) to remain on the market.
And this could be a problem, especially considering PHEVs’ real consumption.
Why this shift
The decision to ban internal combustion engines entirely by 2035 seemed irreversible, but ongoing discussions between European policymakers and the automotive industry have opened up the possibility of a compromise. This shift could result in a regulatory framework that acknowledges the role of hybrid technology in achieving climate goals while maintaining competitiveness in the European automotive sector.
The report from Der Spiegel indicates that Brussels is seriously considering keeping the market open for plug-in hybrids beyond 2035. According to various sources, an informal agreement has already been reached, with key industry players advocating for regulatory flexibility.
A major figure in these discussions is Eckart von Klaeden, former German politician and current head of institutional relations at Mercedes-Benz. He stated, “We believe regulations should remain open to technological diversity, allowing the continued authorization of plug-in hybrid and range-extender models as they are clean vehicles.” This statement carries significant weight, especially given that Mercedes-Benz CEO Ola Källenius will assume the presidency of the European Automobile Manufacturers’ Association (ACEA) in January 2025. As the main lobbying group for the European car industry, ACEA has substantial influence over EU regulatory decisions.
Further evidence of this potential policy shift comes from a recent strategic document published by the European Commission. The document states, “We want to examine possible flexibilities to ensure that our sector remains competitive without lowering the overall ambition of the 2025 targets.” Additionally, it highlights the importance of a technology-neutral approach to achieving climate neutrality in the automotive sector by 2035. The document also acknowledges the role that e-fuels could play in this transition, hinting at a potential amendment to existing regulations as part of a planned review.
What does this mean?
If the EU officially adopts this more flexible stance, automakers that have heavily invested in hybrid technology could benefit significantly. Companies like Mercedes-Benz, BMW, and Toyota—known for their strong hybrid portfolios—would gain additional time to refine their strategies and adapt to evolving market demands.
Additionally, this move could make the transition to fully electric mobility smoother for consumers who are not yet ready to abandon combustion engines entirely.
