EU petrol car ban

Political explanation ruled out: “More of a victory for customers”

The EU is backing down from its ban on the sale of cars with combustion engines from 2035. In practice, the U-turn means that a limited number of petrol and diesel cars will be able to be sold thereafter, if they meet certain requirements. AFP writes.

The aim of the move is to support Europe's industry, according to Industry Commissioner Stéphane Séjourné.

“I am sure that this package will open a new era for the European car industry,” she said at a press conference.

But it is not so simple that the development can be seen as a victory for the automotive industry, according to analysts Bloomberg spoke to.

“It is probably more of a victory for customers. For manufacturers, multiple powertrains mean that investments must be spread across multiple technologies,” says Jefferies analyst Philippe Houchois. 

Analysis: EU peeing on itself – first hot then hard

The EU is withdrawing the planned ban on petrol and diesel cars from 2035 to support domestic industry. However, Dagens Nyheter's Jonas Fröberg fears that the revised proposal, if voted through, will lead to the Chinese giants gaining further ground.

"Imagine it's like peeing on yourself – it's hot at first, but then it gets really cold and hard," he writes.

At the same time, a detail could benefit another part of Swedish industry, according to Calle Elfström on SVT Nyheter. One of the requirements for continued sales of cars with combustion engines is that green steel from Europe is used.

"Fossil-free steel in cars could be bingo for Swedish steel companies," writes Elfström.