BMW CEO: Industry not Ready for EU 2035 Petrol car ban

BMW CEO Oliver Zipse has urged the European Union to reconsider its ambitious plan to ban petrol and diesel cars by 2035, arguing that the target is "no longer realistic."

At the Paris Motor Show, Oliver expressed concerns over the EU's dependence on Chinese EV battery manufacturers and advocated for a more flexible regulatory approach that supports various 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,” he warned.

Zipse's comments highlight growing worries within Europe’s automotive sector, which is under increasing pressure to meet the EU’s environmental targets.

The case for a diverse approach to low-emission vehicles Zipse's critique centers on the need for a broader strategy, one that leverages Europe’s strengths in alternative fuel technologies like hydrogen fuel cells, e-fuels, and biofuels, instead of focusing solely on battery-electric vehicles.

These concerns aren’t unique to BMW. Automakers like Volkswagen and Renault have also voiced doubts about the feasibility of the 2035 deadline.

Italy’s government has joined the conversation, calling for a delay or easing of the ban.

The European Automobile Manufacturers Association (ACEA), representing 15 major automakers, has warned that slower-than-expected EV adoption could result in "multibillion-euro fines" for companies unable to meet the EU’s stringent emissions targets.

Industry leaders are now questioning whether the current regulations are either achievable or sustainable.

Concerns over the future of EVs

Slumping car sales and EV adoption Recent data strengthens these concerns.

In August, car sales across Europe dropped by nearly 16% year-on-year, with EV sales plummeting by 24%.

The end of popular EV subsidies in Germany, Europe’s largest auto market, has further strained the situation, raising doubts about the market’s ability to meet the EU’s 2035 goals.

This sharp downturn illustrates the widening gap between the EU's environmental goals and the reality of the automotive market.

While Europe is progressing in EV production, it still trails behind China in affordability and battery technology, increasing the disconnect between ambition and execution. Europe’s edge in alternative fuel technologies Despite these obstacles, Europe holds a strong position in alternative fuel technologies, which Zipse believes should be central to the EU’s green agenda.

Technologies like hydrogen fuel cells, e-fuels, and biofuels offer significant carbon reduction potential while broadening the industry’s approach to sustainability.

Zipse cautioned that "overly prescriptive regulations" could marginalize these innovations, which provide more adaptable solutions for lowering emissions. Focusing solely on battery-electric vehicles, he argued, risks missing other ways to achieve the EU’s environmental targets.

Broader economic and geopolitical stakes The debate over the 2035 ban carries wider implications beyond the automotive industry.

Broader questions about European economic independence

Italy’s Prime Minister, Giorgia Meloni, called the EU’s stance “self-destructive,” while nations like the Czech Republic, a major automotive hub, have advocated for more regulatory flexibility.

The issue raises broader concerns about Europe’s economic independence, especially its reliance on China for EV batteries.

Moving toward a more diverse range of low-emission technologies could reduce Europe’s dependence on Chinese imports and boost its industrial competitiveness. At a crossroads: The future path As the 2035 deadline approaches, BMW and Europe’s automotive industry face a pivotal moment. Experts remain split on the best course of action.

Some support increased incentives to speed up EV adoption, while others, like the German Association of Energy and Water Industries (BDEW), call for greater emphasis on expanding Europe’s EV charging infrastructure.

Zipse’s call for a "strictly technology-agnostic path within the policy framework" captures the automotive industry's desire for more flexibility during this transition. The coming months will be critical in deciding whether the EU stays the course or adjusts its strategy to address the concerns of its automotive sector.

With billions in investments and thousands of jobs at stake, the choices made now will shape the future of European mobility and industrial competitiveness for decades.

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