EU Carmakers Urged Review of 'Unfeasible' CO2 Targets

European automakers and suppliers had pressed the EU to revise its ambitious vehicle CO2 reduction goals, warning that the 2030 and 2035 targets were no longer feasible. In a letter to European Commission President Ursula von der Leyen, industry leaders reiterated their commitment to net zero by 2050 but highlighted mounting challenges.

The sector had flagged critical issues including heavy reliance on Asian battery supply chains, insufficient charging infrastructure, higher production costs, and U.S. tariffs. They stressed that rigid mandates alone could not drive the transition, particularly as electric vehicles made up only 15% of new EU car sales and 9% of vans.

Instead, automakers had called for a broader technology mix-spanning EVs, hybrids, hydrogen, and decarbonised fuels-while also urging a review of heavy-duty vehicle regulations. They warned that enforcing a 100% switch by 2035 risked undermining Europe’s competitiveness at a time of rising global pressures.

The debate came ahead of von der Leyen’s scheduled meeting with auto executives on September 12, aimed at shaping a realistic and resilient roadmap for the sector’s future.

The industry position - commitment to 2050 net-zero but concerns about 2030/2035 delivery - reflects a real capability gap.

Battery-supply-chain concentration in Asia, insufficient charging infrastructure, cost pressures and US tariff dynamics all constrain the pace at which European automakers can meaningfully shift production to zero-emission vehicles.

At 15 percent EV share of new car sales and 9 percent for vans, current progress falls well short of the trajectory needed to hit 2030 milestones.

The technology-mix argument (EVs, hybrids, hydrogen, decarbonised fuels) has merit for specific segments - heavy-duty and long-range applications remain challenging for pure EV - but risks becoming a delay mechanism if it dilutes overall regulatory pressure. The eventual EU position will need to balance industry-adjustment realism with the trajectory required to meet 2050 net-zero, particularly given the pace of Chinese EV manufacturing scale-up.

For automotive OEMs, suppliers, charging-infrastructure operators and financial institutions supporting the sector's transition, Cognitud's climate action, market intelligence and ESG strategy teams help clients build scenario-based transition strategies robust across different regulatory outcomes, structure capital plans that reflect both timing risk and underlying market trajectory, and prepare disclosures aligned with CSRD, ISSB and CDP Auto expectations that give investors visibility into how climate-policy shifts translate into commercial exposure.