Why the EU isn't banning ICE, and what it means for SA
If you’ve been following the global automotive scene, you’ll know that 2035 was supposed to be the end of the road for the internal combustion engine (ICE). The European Union (EU) had famously decreed that by 2035, only zero-emission vehicles could be sold.
As we roll into 2026, the script has changed. In a massive policy shift late in December 2025, the European Commission officially proposed a "softening" of the rules. Is the petrol engine saved? Not quite—but it’s definitely been granted a stay of execution. Here is everything you need to know about the EU’s U-turn and why it matters to us in South Africa.
From a 100% ban to a 90% target
The original plan was a total 100% ban on any car that emitted a single gram of CO2 from its tailpipe. The new "Automotive Package" proposed in December 2025 has replaced that hard ceiling with a 90% emissions reduction target.
While 10% might sound small, in the world of car manufacturing, it’s a game-changer. It means that carmakers are no longer forced to go all-in on Battery Electric Vehicles (BEVs). Instead, the door has been left open for:
Hybrids and Plug-in Hybrids (PHEVs): These are no longer on the banned list for 2035.
High-efficiency ICE: Petrol and diesel engines can stay, provided their remaining emissions are offset.
Alternative fuels: The 10% gap can be filled using synthetic e-fuels or advanced biofuels.
Why did the EU blink?
Europe’s "Green Deal" hit a brick wall of reality in 2025. Several factors forced the hands of Brussels lawmakers:
- The rise of China: European giants like VW, Mercedes-Benz, and BMW have struggled to compete with the price points of Chinese EV makers like BYD, SAIC, Geely and GWM, to name a few. Dropping the ban allows European brands to keep playing to their strengths (engines) while they catch up on battery tech.
- Political pressure: Major car-producing nations—Germany and Italy—lobbied hard to protect millions of jobs. New leadership, including German Chancellor Friedrich Merz, pushed for "technological neutrality" rather than a government-mandated battery future.
- Consumer resistance: In many parts of Europe, EV sales slowed down as subsidies were pulled back. It turns out, not everyone is ready to give up the convenience of a five-minute refuel.
What does this mean for South Africa?
This is arguably the biggest news for the South African automotive sector in a decade. Here’s why:
Our factories are saved (for now)
South Africa is a massive exporter of ICE vehicles to Europe. For years, the 2035 ban felt like a ticking time bomb for our local plants in Gqeberha, Pretoria, and Durban. With the EU allowing hybrids and high-efficiency engines beyond 2035, the "death date" for SA manufacturing has been significantly pushed back.
More hybrid options
As European manufacturers are now doubling down on hybrids and PHEVs to meet the 90% target, we can expect a surge of new "New Energy Vehicle" (NEV) options in local showrooms. If you aren't ready for a full EV because of range anxiety or load-shedding concerns, the next decade is going to be the "Golden Age" of the hybrid.
Second-hand values
The "panic" that petrol cars would become worthless by 2035 is evaporating. This policy shift provides more certainty for the used-car market. Your Hilux or Polo is likely to hold its value better, knowing that the world isn't turning its back on liquid fuel quite as fast as we thought.
Verdict
The shift to electric is still underway—the EU is still aiming for a 90% reduction, after all—but the "forced march" has evolved into a more measured pace. For South Africans, this is a win for choice. Whether you want the silent torque of an EV, the familiarity of petrol, or a combination of the two, the global car industry has just ensured you’ll have both options for a while to come.
