BMW CEO Urges EU to Rethink 2035 Petrol Car Ban Deadline
BMW CEO Oliver Zipse has called on the European Union to rethink its ambitious plan to phase out petrol and diesel cars by 2035, stating that the target is “no longer realistic.”
At the Paris Motor Show, Oliver raised concerns about the risks tied to the EU's reliance on Chinese EV battery manufacturers and stressed the importance of a more flexible regulatory approach that embraces multiple low-emission technologies.
“A correction of the 100% BEV [Battery Electric Vehicle] target for 2035 as part of a comprehensive CO2-reduction package would also afford European OEMs [Original Equipment Manufacturers] less reliance on China for batteries,” Oliver warned. His comments reflect growing unease in Europe’s automotive industry, which faces increasing pressure to meet the EU's environmental targets.
Call for a diverse approach to low-emission vehicles
Oliver's critique of the 2035 ban hinges on the need for a broader strategy that leverages Europe's strengths in alternative fuel technologies, such as hydrogen fuel cells, e-fuels and biofuels, rather than focusing exclusively on battery-electric vehicles.
The mood in Europe is trending towards pessimism.
Rather than relying solely on EVs and their associated battery technologies, Oliver advocates for a more "technology-agnostic" approach that allows for multiple low-emission solutions to thrive.
Doing this would not only enhance the industry's resilience but reduce dependence on Chinese-manufactured batteries, which currently dominate the global supply chain.
Growing concerns in the automotive sector
Oliver’s concerns are not isolated. Other major automakers, including Volkswagen and Renault, have voiced similar doubts about the feasibility of the 2035 deadline. Even the Italian government has stepped into the conversation, urging for a delay or relaxation of the ban.
The European Automobile Manufacturers Association (ACEA), which represents 15 major automakers, has warned that slower-than-expected EV adoption could lead to "multibillion-euro fines" for companies unable to meet the EU's strict emissions targets.
As a result, industry leaders are increasingly questioning whether the current regulatory framework is achievable or sustainable.
Stalling car sales and EV adoption
Recent data adds weight to these concerns. In August, car sales across Europe fell by nearly 16% compared to the same period last year, with EV sales suffering an even steeper decline of 24%.
The end of popular EV subsidies in Germany, Europe’s largest automotive market, has further exacerbated the situation, raising doubts about whether the market can adapt quickly enough to meet the EU’s 2035 goals.
The sharp downturn highlights the growing disconnect between the EU's policy objectives and the realities of the automotive market. While Europe is making strides in EV production, it still lags behind China in terms of affordability and battery technology, widening the gap between ambition and implementation.
Europe's strength in alternative fuel technologies
Despite these challenges, Europe maintains a strong position in alternative fuel technologies, which Oliver argues should be fully integrated into the EU's green agenda. Technologies like hydrogen fuel cells, e-fuels and biofuels have the potential to significantly reduce carbon emissions while diversifying the industry’s approach to sustainability.
"Overly prescriptive regulations," Oliver warned, risk sidelining these innovations, which could offer more flexible solutions for reducing emissions across the automotive sector. By focusing solely on battery-electric vehicles, the EU may be overlooking other pathways to achieving its environmental goals.
Broader economic and geopolitical concerns
The debate over the 2035 ban has far-reaching implications beyond the automotive industry.
Italy's Prime Minister, Giorgia Meloni, has described the EU's approach as “self-destructive,” while countries like the Czech Republic, a key automotive manufacturing hub, are calling for greater regulatory flexibility.
The issue raises concerns about Europe's economic independence, particularly its reliance on China for EV batteries. A shift towards a more diverse range of low-emission technologies could reduce Europe’s dependence on Chinese imports and strengthen its industrial competitiveness.
Stuck at a crossroads: The path forward
As the 2035 deadline approaches, BMW and the wider European automotive industry find themselves at a critical juncture. Industry experts remain divided on the best path forward.
Some argue for increased incentives to accelerate EV adoption, while others, such as the German Association of Energy and Water Industries (BDEW), are calling for a stronger focus on expanding Europe’s EV charging infrastructure.
Oliver’s call for a "strictly technology-agnostic path within the policy framework" encapsulates the automotive industry's desire for more flexibility in navigating this transition. The coming months will be crucial in determining whether the EU sticks to its current course or adjusts its strategy to accommodate the concerns of its automotive sector.
With billions in investments and thousands of jobs at stake, the decisions made now will shape the future of European mobility and industrial competitiveness for decades to come.
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