Core Viewpoint - The European Commission has revised its plan to ban the sale of gas-powered cars by 2035, allowing for 10% of new car sales to be hybrids or other vehicles with carbon offsets, reflecting a need for flexibility in the automotive industry [1][2]. Industry Response - Traditional European carmakers are likely to support the revised plan, as they have been struggling to compete with Tesla and affordable electric vehicles from China, and have requested more time to transition away from hybrid vehicles [3]. - The policy change has created divisions among electric vehicle (EV) startups and their investors, with some expressing concerns about the long-term implications for Europe's competitiveness in the EV market [3][5]. Competitive Landscape - Craig Douglas from World Fund emphasized that without clear and ambitious policy signals, Europe risks losing its leadership in the EV industry to China, which already dominates EV manufacturing [4]. - The traditional automobile industry, which accounts for 6.1% of total EU employment, has exerted pressure on the European Commission, influencing the decision to soften the original 2035 target [5]. Diverging Opinions - Within the auto industry, there are differing opinions on the revised timeline. Volvo has expressed concerns that backing down on long-term commitments could undermine Europe's competitiveness, advocating for increased investment in charging infrastructure instead [6]. - Issam Tidjani, CEO of Cariqa, warned that weakening the 2035 zero-emission mandate could hinder overall electrification progress, citing historical evidence that such flexibility has not been beneficial [7].