The European Union will soften its 2035 ban on new petrol and diesel cars, allowing plug-in hybrids to continue beyond the deadline, a senior MEP confirmed Friday.

Why it matters: The reversal guts Europe’s flagship climate policy just as Chinese competitors flood the continent with affordable EVs.

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EVXL’s Take

This decision confirms what we warned about two weeks ago: European automakers are treating the symptom, not the disease. The real crisis is not regulatory pressure. It is competitive collapse. While Brussels debates loosening rules, BYD is doubling its European dealer network to 2,000 locations by 2026 and building tariff-proof factories in Hungary and Turkey.

Softening the 2035 target will not solve the development speed gap where Chinese competitors launch new models in 18 months versus Volkswagen’s five years. It simply gives European automakers permission to retreat to profitable hybrids while Chinese brands capture market share. When Germany sent its formal letter to Brussels demanding this rollback, we called it damage control disguised as industrial policy. Tuesday’s announcement proves us right.

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