EU Revises 2035 Gasoline and Diesel Car Ban, Stirring Debate in Swedish Industry and Politics

On December 16, 2025, the European Commission announced it will not enforce a total ban on new gasoline and diesel cars by 2035, marking a significant policy shift. This decision relaxes earlier stringent regulations aimed at accelerating the green transition in the automotive sector, sparking varied reactions across Sweden's political and industrial landscape.

Åsa Westlund, the Social Democrats' climate policy spokesperson, sharply criticized the move, labeling it a setback for Swedish companies that have been leaders in adopting greener technologies. She expressed concern that the decision could hamper Sweden's ongoing efforts toward sustainable industry practices.

From the automotive industry perspective, Sigrid de Vries of Acea underscored the critical nature of this revision, describing it as “a crucial milestone for the sector's future” during a press briefing in Brussels. The industry appears hopeful that this policy change will provide some relief amid challenges faced by manufacturers.

Conversely, analyst Jonas Fröberg likened the EU's dilution of the zero-emission car target to "kissing on oneself," suggesting it offers only short-term respite. He warned that the shift might create openings for increased market share of Chinese electric vehicles. Additionally, the Christian Democrats expressed support for the EU’s revised approach, contrasting with Volvo Cars CEO Håkan Samuelsson's previously vocal advocacy for tougher emissions standards.

As the debate unfolds, Sweden's automotive sector and policymakers face uncertainty on how best to balance environmental goals with industry viability under the new EU regulations.