Mercedes CEO Criticizes European Union (EU) Fuel Car Ban, Calls to Face Reality

According to foreign media reports, on August 11, Mercedes-Benz CEO Ola Källenius criticized the European Union's plan to ban the sale of cars emitting carbon dioxide starting from 2035 in an interview with the media. As the EU's fuel vehicle ban target is set for review this year, more and more people are questioning it, and Källenius has also joined this group.

The EU's ban on fuel-powered vehicles in 2035 will face a critical review in the second half of 2025. Supporters claim it is essential for Europe's green transition goals, while opponents argue that it will add to the challenges already faced by the European automotive industry, such as shrinking demand, competition from Chinese car manufacturers, and slower-than-expected growth in the electric vehicle market.

Image source: Mercedes-Benz

Kaellenius, in an interview with Handelsblatt business daily, said regarding the ban, "We need to face reality. Otherwise, we will be heading towards a dead end." He also stated that if the ban is implemented, the European car market might "collapse."

Kaellenius believes that consumers will hurry to purchase gasoline or diesel cars before the ban takes effect.

This German automotive industry leader, who also serves as the chairman of the European Automobile Manufacturers Association (ACEA), has called for encouraging consumers to switch to electric vehicles through tax incentives and lowering electricity prices at charging stations.

Kaellenius stated, "Of course, we must achieve decarbonization, but this must be done in a technology-neutral manner, and at the same time, we cannot ignore our own economic situation."

However, the EU's 2035 ban on fuel-powered vehicles is not set in stone, as the plan will undergo a review in the coming months. Nevertheless, as recently as this March, the European Commission, the EU’s executive body, reiterated its commitment that by 2035, newly sold cars must achieve zero grams of carbon dioxide emissions per kilometer. At that time, the European Commission stated that it would "accelerate the preparatory work for the expected review of the CO2 emission standards regulations for cars and vans," which means that the agency may reassess the ban ahead of schedule.

Mercedes-Benz indeed has reason to worry that this ban could impact its business. In the first half of 2025, the proportion of its pure electric models in global sales dropped to 8.4%, lower than 9.7% in the same period of 2024. Even when including plug-in hybrid electric vehicles (PHEVs), deliveries of electrified models accounted for only 20.1% of total deliveries in the first six months of this year.