Volkswagen CEO Calls for Delay to 2035 EV Sales Mandate | UK & EU

UK and EU Reassess 2035 Combustion Engine Ban Amidst Slow EV Adoption

The ambitious timelines for phasing out combustion engine vehicles in both the United Kingdom and the European Union are facing renewed scrutiny, as automakers express concerns about the feasibility of meeting aggressive electric vehicle (EV) adoption targets. Volkswagen CEO Thomas Schäfer recently stated that the legislation effectively banning new combustion car sales from 2035 “really needs to be looked at,” as manufacturers “need a little more time” to achieve the mandated EV registration levels.

Currently, UK law stipulates that 100% of new cars sold from January 2035 must be fully electric, while the EU aims for 90% EV sales by the same date. However, current market realities suggest these goals are increasingly challenging. As of this year, EVs account for only 22% of new car sales in the UK and 20% in Europe, a significant gap from the required 100% and 90% respectively.

This reassessment follows a broader trend of governments softening their stance on EV mandates. In April 2025, the UK announced it would delay its own “zero-emission mandate” from 2030 to 2035, aligning it with the revised EU timeline. This decision allows for the continued sale of hybrid vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) during the extended transition period, offering consumers more options and providing automakers with additional time to scale up EV production. Petrol and diesel-only vehicles are still slated for phase-out by 2030, however.

The shift in policy comes in response to mounting pressure from the automotive sector, which has highlighted several obstacles hindering the transition to electrification. These include soaring electricity costs, exacerbated by the ongoing Russia-Ukraine conflict, and slower-than-expected development of power grid infrastructure and EV charging networks. The rapid growth of Chinese EV manufacturing is also placing strain on Europe’s renewable energy capacity, adding another layer of complexity to the situation.

The EU had previously moved to scrap plans for an effective ban on new combustion engine cars from 2035, according to a senior EU lawmaker. This reversal underscores the growing recognition that a purely EV-focused approach may not be sustainable in the short to medium term. While the long-term goal of decarbonizing the transportation sector remains, policymakers are now acknowledging the need for a more pragmatic and flexible approach.

The UK government has pledged £2.3 billion (approximately US$2.9 billion) to support the transition, but industry leaders argue that more substantial investment is needed to address the infrastructure challenges and ensure a smooth shift to electric mobility. The debate over the 2035 targets highlights the delicate balance between ambitious climate goals and the practical realities of automotive manufacturing and consumer adoption.

Looking ahead, the automotive industry and policymakers will need to collaborate closely to develop a realistic and achievable roadmap for the transition to EVs. Key areas of focus will include accelerating the deployment of charging infrastructure, reducing electricity costs, and fostering innovation in battery technology. The coming years will be crucial in determining whether the industry can overcome these hurdles and meet the evolving demands of a rapidly changing automotive landscape.