TechCrunch Startup News As EU waters down 2035 EV goals, electric startups express concern
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Dec 22, 2025 The European Commission has dialed back its ambitious plan to ban gas-powered cars by 2035, allowing for a 10% exemption. Startups express concern that this shift may weaken Europe's leadership in the EV market. Traditional automakers are pushing for more lenient policies, potentially compromising electrification progress. Volvo emphasizes the need for investment in charging infrastructure, while the $2.11B Battery Booster aims to bolster EU battery supply chains. With rising competition from Chinese EVs, the UK's market response remains uncertain.
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Weakening 2035 Target Risks Leadership Loss
- The European Commission softened the 2035 zero-emission car target to allow 10% non-zero-emission sales with carbon offsets.
- Critics warn this weaker signal could delay electrification and cost Europe industrial leadership in EVs.
Legacy Carmakers Sway Policy With Jobs Argument
- Traditional European carmakers lobbied for flexibility to buy time against Tesla and Chinese EVs.
- The auto industry's size (6.1% of EU employment) increased pressure on the Commission to relax the mandate.
Keep Long-Term Targets To Preserve Scale
- Do maintain firm long-term decarbonization targets to accelerate scale and learning curves.
- Avoid short-term flexibility that delays industrial scaling and weakens competitiveness.