German automakers call for ban on sales of new combustion-engine cars to be scrapped

Germany’s leading automotive association, the VDA, is calling for the ban on sales of new cars with combustion engines from 2035 to be scrapped. The Social Democrats, who govern in a coalition with the conservatives of Chancellor Friedrich Merz, rejected the VDA’s proposal, saying it would reduce certainty for investment planning in the sector. The international news outlet Clean Energy Wire reported.

In an unpublished draft of a ten-point plan for achieving climate-neutral mobility, seen by the newspapers Table Media and Politico, the VDA reportedly called for the requirement to cut emissions from newly sold cars to be eased from 100% by 2035 to 90%.

“The change would mean that a limited number of new cars with combustion engines would be registered after 2035,” said the association’s president, Hildegard Müller.

The VDA bases its proposal on low electric-car sales last year and generally weak demand for electric vehicles, which remains “well below the levels needed to meet climate targets”. The association also cites a lack of charging stations, modern power grids and subsidy schemes in many European countries as shortcomings in the planned transition to electric mobility.

The VDA therefore says it is important to adjust emissions limits to ensure that the development and production of combustion engines—an area in which European automakers are world leaders—remain in Europe.

The VDA’s membership includes not only the largest German groups, such as VW, Mercedes and BMW, but also many companies specialising in combustion-engine technology that would face an existential crisis if passenger transport were fully electrified.

Criticism from the SPD and clean-mobility experts

The governing SPD has signalled that it would oppose the German government adopting the proposed position, according to Clean Energy Wire. The party says this would pose a serious threat to automakers’ planning and investment security.

Notably, the other governing party, Chancellor Friedrich Merz’s CDU, called for a similar measure to the one proposed by the VDA ahead of this year’s election. However, it failed to secure its inclusion in the coalition agreement.

The environmental think tank Agora Verkehrswende warned that adopting the proposed measure would significantly slow the electrification of transport. This would, in turn, jeopardise climate targets and increase the risks to the long-term competitiveness of German industry.

Germany would need to work with other countries

Germany cannot overturn the ban on sales of new cars with combustion engines from 2035 on its own, as it is part of European legislation. However, several member states, including the Czech Republic, have repeatedly called for the measure to be scrapped. According to Czech Transport Minister Martin Kupka (ODS), technological progress alone should determine what people buy.

Many experts interviewed by the international news outlet Clean Energy Wire take a similar view. Most consider the fight over 2035 to be symbolic, saying it is unlikely that most consumers will opt for combustion engines within this timeframe, given recent technological advances and falling electric-vehicle costs.