Core Viewpoint - The divergence among European automakers regarding the transition to electric vehicles (EVs) is becoming increasingly public, highlighted by the recent Munich Auto Show, where companies showcased new EV models while collectively calling for a delay in the 2035 ban on the sale of internal combustion engine (ICE) vehicles, reflecting the industry's struggles with the EU's climate commitments and industrial realities [1][2][5] Group 1: Industry Challenges - The EU approved a regulation in March 2023 to ban the sale of new ICE vehicles starting in 2035 to reduce carbon emissions from the transport sector, but this aggressive target is now being questioned by major automotive associations [2][3] - Major automakers like Mercedes-Benz, BMW, and Stellantis have expressed that the 2035 ban is "unrealistic" and are advocating for the continued development of hybrid and small ICE vehicles [2][3] - The transition to electric vehicles is hindered by several structural challenges, including slow progress in charging infrastructure, high electricity costs, and rising production costs, compounded by tariffs from the U.S. [4][5] Group 2: Market Dynamics - Many leading automakers have struggled to gain widespread consumer acceptance for their electric models, leading to strategic adjustments, such as Mercedes-Benz postponing its target for EV sales to 50% by 2025 and Audi shelving its aggressive electrification plans [3][4] - The cancellation of EV purchase subsidies in Germany by the end of 2023 has resulted in a significant decline in EV sales, further intensifying pressure on the industry [5] Group 3: Strategic Responses - The European Automobile Manufacturers Association suggests a multi-technology approach and calls for increased subsidies, tax reductions, and electricity discounts to enhance consumer acceptance of EVs [6] - Some automakers firmly support the 2035 ban on ICE vehicles, arguing it is crucial for maintaining European competitiveness, while others believe that the market will naturally transition as EV prices align with those of ICE vehicles [6][7] - The EU is attempting to balance the demands of the automotive industry with its climate goals, reaffirming the 2035 ban while allowing for some flexibility in emissions targets [7]