Europe Hits the Brakes on 2035 Gas Car Ban, Shifts Gear to Affordable 'E-Cars' to Battle China!

TL;DR: Europe just did a U-turn on its 2035 gas car ban, looking to ease up and create a new 'E car' class for affordable urban EVs. It's all about fighting off those fast-moving Chinese manufacturers and giving European buyers cheaper options, but will it open the door wider for foreign brands?

Meta: Europe is set to reverse its 2035 gas car sales ban and introduce a new 'E car' category with fewer safety mandates, aiming to make urban EVs more affordable and compete with China.

Alright, alright, settle down, because Europe just made a move that's got everyone scratching their heads faster than a DJ on a broken record player! Remember that big, bold plan to ban new combustion-engine vehicles by 2035? Well, a senior European Parliament member just confirmed they're about to hit the reverse button. That's right, the official announcement is coming next week. It's like they said, 'We're going electric!' and then whispered, '...but maybe a little less electric, for now.'

The Grand Compromise: From Ban to 'Battle China'

This ain't just a simple change of heart, folks. European automakers have been screaming louder than a gospel choir about slower-than-expected EV sales and fierce competition, especially from China. They argued that forcing unprofitable EVs down consumers' throats might just send them to the poor house. So, the EU blinked. Instead of a hard ban, they're reportedly keeping a 90% fleet-wide CO2 emissions reduction target for 2035 – which is still a win for the climate, but gives manufacturers more wiggle room to sell hybrids or even highly efficient gas cars.

But here's where it gets really interesting: they're cooking up a new class of affordable urban vehicles, the 'E car' category, inspired by Japan's 'kei cars.' These 'E cars' would have fewer mandatory safety features, specifically to drive down their sticker price by 10-20%. Think small, limited power, and maybe some tax exemptions to sweeten the deal. It's a clear shot at countering the surge of low-cost EVs from Chinese manufacturers like BYD, who are already making waves across the continent.

The Double-Edged Sword of Affordability

Now, on one hand, cheaper EVs? Sounds like a win for the average Joe and Jane! Cars like the Dacia Hipster concept, which aims for under €15,000, could become a reality. This could help European brands offer competitive options to a market craving affordability. But here's the rub, my friends: won't these same relaxed regulations also apply to Chinese carmakers? If BYD can already sell competitive EVs in Europe despite tariffs, imagine what they could do with an 'E car' designed specifically for this new, looser category. They already made a 'kei car' for Japan, so adapting for Europe is just another Tuesday for them.

This policy shift, while aimed at protecting local industry, could inadvertently roll out the red carpet for even more foreign competition. It's a delicate dance, trying to spur local innovation while keeping the market open enough for progress. Meanwhile, global EV sales are still climbing – up 21% in 2025 – with Europe leading the charge, but the US market is hitting some bumps, thanks to expired tax credits and policy shifts. So, this isn't just a European story; it's a global battle for the future of the automotive industry.

What’s Next

We'll be waiting for the official word on the precise details of the gas car ban reversal and the 'E car' class. The specifics of size, power, and safety requirements will determine how European and international automakers adapt their strategies. This move highlights the complex balance between environmental goals, economic protectionism, and consumer demand in the rapidly evolving EV market. It's a big gamble, and only time will tell if it pays off for Europe, or if it just creates a bigger opening for China.

Stay sharp, stay clean!