Petrol and diesel car ban 'no longer realistic': BMW boss calls on the EU to reverse its ban on new petrol and diesel car sales from 2035

Global BMW boss Oliver Zipse has called for the European Union to scrap its ban on new internal combustion engine vehicles by 2035 to give the industry more time to reduce its reliance on Chinese battery technology.

Speaking to reporters at the Paris motor show, Zipse, a fervent advocate for alternative zero-emissions fuel sources such as biofuel and hydrogen, said the ICE ban could "lead to a massive shrinking of the industry as a whole".

Rising manufacturing costs, low levels of technological innovation and stiff competition from budget Chinese brands have forced many European automakers to delay their electrification plans in the face of the EU’s mandate.

Zipse has consequently pushed for a rethink of Europe’s regulatory framework guiding the EV transition so that European automakers can play more to their strengths.

"A correction of the 100 percent BEV target for 2035 as part of a comprehensive CO2-reduction package would also afford European OEMs less reliance on China for batteries," he said.

BMW joins several automakers who have raised the alarm against the EU’s landmark 2023 ruling, fearing subsequent multi-billion-euro fines could hurt their businesses amid lower-than-expected demand for EVs.

Stellantis and VW have also made similar objections, while the Italian government has called for the mandate to be reformed or for the deadline to be extended.

Europe’s car market has shrunk by roughly 18 per cent since the pandemic, according to the European Automobile Manufacturers’ Association. EV uptake fell by 43.9 per cent in August compared to the previous year, according to Reuters.

The decline in car sales is partly driven by increasing costs.

The average price of an EV in Europe has risen roughly 11 per cent since 2020, from approximately €40,000 ($65,000) to approximately €45,000 ($73,000), according to Automotive News Europe.

This isn’t helped by the fact that European regulators are set to impose tariffs on cheaper Chinese-made EVs of up to 35.3 per cent, in addition to an already standing 10 per cent levy on imported vehicles.

It's a measure that is likely to create even more pain for automakers like BMW, Stellantis and VW who produce several EVs in China, with Zipse calling it a “fatal blow” for the industry.