Europe set to relax significant 2035 prohibition on new diesel and gasoline vehicles.

EU Policy Change: The European Union is expected to soften its ban on new combustion-engine car sales from 2035 due to lobbying from Germany, Italy, and automotive groups, which could impact the region's climate goals and competitiveness.

Industry Concerns: Auto industry representatives argue for flexibility in the ban to protect competitiveness and supply chains, while some EV manufacturers urge the EU to maintain its 2035 target to support ongoing investments in the electric vehicle sector.

Economic Implications: Analysts warn that scaling back the ban may not significantly enhance long-term competitiveness and could hinder the transition to electric vehicles, as the industry faces challenges from tariffs and competition.

Diverse Opinions: While some automakers advocate for a more gradual approach to the ban, others emphasize the need for bold action to ensure the EU remains a leader in the electric vehicle market amidst rising competition from China.