4 Minutes
Industry calls for a more gradual shift toward 2050
European carmakers, led by the ACEA trade body, argue that committing to a total ban on internal combustion engines (ICE) as early as 2035 is too hasty. ACEA recommends aiming for climate-neutral transport by 2050, while asking regulators to retain flexibility for manufacturers during the transition. The debate puts pressure on automakers balancing large electric-vehicle (EV) rollouts with ongoing demand for gasoline and diesel models.
What some manufacturers are saying
Not all OEMs share the same view. Kia’s European chief, Marc Hedrich, told Automotive News that scrapping ICE models so soon “would cost us a fortune.” Hedrich says Kia has "an avalanche of electric cars coming," and that slowing EV launches to keep combustion models on sale would erode profitability. Although Kia itself is not an ACEA member, its parent company Hyundai is, underlining how closely carmakers are weighing regulation against commercial strategy.
Regulatory adjustments and CO2 targets
The European Union reaffirmed the 2035 ICE sales ban earlier this year but introduced some breathing room for manufacturers. CO2 targets that kicked in for 2025 no longer require strict compliance each year; instead, automakers can average emissions across the 2025–2027 period. Even with this relaxation, the new targets for the 2025–2029 cycle are 15% tighter than the 2021–2024 rules, forcing fleets to average roughly 93.6 g/km of CO2. That compression accelerates electrification pressure while still giving OEMs a limited compliance window.
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Vehicle specifications: EVs vs ICE and hybrids
From a technical perspective, automakers must juggle very different engineering priorities when offering EV, hybrid and ICE lineups. Typical mainstream electric models now deliver ranges from about 300–500 km (WLTP) on battery packs between 50–80 kWh. Peak torque and instant power delivery make many EVs competitive in 0–100 km/h times versus similar-mass petrol cars, while charging speeds (50 kW to 350 kW depending on vehicle and infrastructure) and battery thermal management remain key battlegrounds.
ICE and hybrid specifications
Modern combustion engines still offer strengths: lower purchase cost, fast refuelling and broad fueling infrastructure. Mild-hybrid and plug-in hybrid drivetrains provide intermediate CO2 reductions—efficient in urban cycles and attractive for buyers who need long-range flexibility without full EV charging dependency.
Design and performance implications
EV architecture (skateboard platforms and low battery placement) enables different proportions, lower center of gravity and larger cabin space compared with ICE equivalents. Performance-focused EVs exploit high electric torque and advanced traction control, while ICE vehicles rely on refined powertrains and chassis tuning to match driver engagement. These differences shape buyers’ expectations across segments from compact crossovers to luxury sedans.
Market positioning, profitability and fleet strategy
Automakers must weigh development and production costs, supply chain constraints (notably batteries and semiconductors), and dealer network readiness. Rapidly launching a wide EV portfolio can be capital intensive; slowing that cadence to preserve ICE sales can protect short-term margins but risks non-compliance with tightening CO2 targets. Manufacturers therefore adopt mixed strategies: aggressive EV launches in high-demand segments, continued ICE and hybrid offerings in markets or customer groups that remain reliant on liquid fuels.
Comparisons and final take
ACEA’s recommendation to target neutrality by 2050 rather than force a 2035 ICE phase-out reflects concerns about industrial disruption, jobs, and technological readiness across Europe. OEMs like Kia and Hyundai are caught between regulatory momentum and commercial realities: an "avalanche of electric cars" is coming, but wholesale elimination of combustion engines within a tight timeframe could be economically damaging and logistically risky. A pragmatic approach—phasing EV adoption while keeping efficient hybrids and cleaner ICE tech in the short term—may better balance climate ambition with market stability.
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