Four reasons why weakening EU CO2 targets would not help European carmakers
1. Targets help EU manufacturers compete in the global EV race
EV sales in China and emerging markets, such as Indonesia, Thailand and Vietnam, are surging. In Europe, thanks to car CO2 standards, we are in the midst of an EV boom in Europe. In the first half of 2025 alone, European manufacturers’ EV sales grew by almost 40%, T&E’s EV progress report finds.
Volkswagen, Europe’s largest automaker, increased its EV sales by an incredible 89%.
How? With an EU emissions target looming, they upgraded their electric models and lowered their prices. This is great news for consumers and helps the European industry compete globally.
Yet the EU is still under pressure from carmakers to weaken their 2030 and 2035 emissions targets. The reality is that electric car sales are surging and emissions rules are key to that. By sticking to the agreed rules, Europe can give its automotive industry a fighting chance in the global EV race.
2. Almost all European manufacturers are on track to comply
Despite their complaints, most of the automotive industry is on track to comply with emission rules in 2027.
Mercedes-Benz, which holds the presidency of EU auto lobby ACEA and is the loudest opponent of EU emissions targets, is the only European car manufacturer that would fail to reach the 2025-2027 targets on its own, the report finds. It would be 10 gCO₂/km undercompliant and would need to buy credits from Volvo Cars and Polestar.
While all other European carmakers are on track, the EU is still under pressure to weaken their 2030 and 2035 emissions targets, after already giving a major concession to the manufacturers by extending the 2025 target deadline by two years. Carmakers responded by increasing the price premium of electric models over combustion cars. As a result, 2 million fewer electric cars are expected to be sold. Weakening future targets would see Europe's industry fall behind on electrification.
3. European manufacturers have issues, but holding back EVs won’t help
European carmakers are lobbying like crazy to stop Europe’s transition to electric vehicles. They want to go on selling gas guzzlers and plug-in hybrids which are worse than petrol cars. And they even want to create a whole new bureaucracy for biofuels credits, and very expensive e-fuels.
Some manufacturers have issues. Combustion engine sales in China have collapsed, putting a massive dent in the profits of European manufacturers. At the same time, they are behind on automation and electrification. But going slow on electrification is not going to help them. It will make things worse. If Europe abandons its ambition to master the most important technologies of the 21st century, it will end up as a car museum.
All around the world, countries are going electric. EV sales in China and emerging markets, like Indonesia, Thailand and Vietnam, are surging. If we want to export our cars around the world, we need to produce the cars they will buy.
4. The market conditions for massive sales of affordable EVs are there
Nine new affordable EV models with a starting point of €25,000 will be available by the end of 2025. And by the end of 2027, this number will grow to 19.
Meanwhile, battery costs are set to fall by 27% between 2022 and the end of this year and are set to decrease by another 28% by 2027 compared to 2025 levels, T&E forecasts. Similarly, charging infrastructure has been deployed on 77% of the EU core highway network and all Member States have already met or surpassed the number of public charging points required by the EU’s 2025 target.
The market conditions are there for massive sales of affordable EVs. Now is not the time to change the EU emissions rules.
