German state task force pushes to soften EU car emissions rules as EV sales hit records

A state task force joins the fight

The agenda went to the German government and the EU, regional newspaper Badische Neueste Nachrichten reported. Members include Audi, Mercedes, Daimler Truck, Porsche and Bosch, plus the IG Metall union and employers' association Gesamtmetall. The panel last met on Monday afternoon.

It asks for more flexible EU fleet emissions limits, adjustments to CO2 reduction targets and credits for low-carbon materials and fuels. It also proposes a separate category for vehicles running exclusively on biogenic fuels and electricity-based synthetic fuels. The panel favours incentives over strict quotas.

State Economy Minister Nicole Hoffmeister-Kraut said companies need economically viable conditions to manage the industry's transformation. "We need decisions now that will make our location more competitive again," she told the newspaper.

What the push would change

France and Germany are already pursuing ways to ease the EU rules phasing out combustion-engine cars. Germany wants the 2030 emissions targets relaxed and the 2035 ban softened. The central proposal would let combustion cars take up to 10% of total new-car sales after 2035.

None of that is law. An agreement between the two countries alone would not change EU rules, because amendments need approval from the Council and the European Parliament.

Separately, the Clean Corporate Vehicles Regulation sets binding targets for large companies' new car registrations: 69% zero- and low-emission vehicles by 2030, of which at least 45% must be zero-emission. From 1 January 2028, member states may only support corporate cars that are zero- or low-emission and made in the EU. That is Article 4 of the regulation.

The market is already moving electric

The lobbying runs against the sales data. In September 2026, 422,000 fully electric passenger cars were registered in Europe, a record 31% share and a 63% increase year on year. Plugin vehicles reached 590,000 units and a 43% share, with plug-in hybrids at 167,000 units, up 23%.

Petrol held 18% of the market in September, down 21% year on year, and diesel held 4%, down 28%. Plugless hybrids took 34%, against 36% a year earlier. The overall market grew 10% to 1.4 million units.

Carmakers are hedging both ways

Subaru is going the other way. Subaru Germany told Auto Motor und Sport that the brand will sell EVs exclusively in Europe from the start of 2028. It cited EU emissions rules and driver aid and safety requirements. The Outback leaves the European market before the end of this year; the Impreza, Crosstrek and Forester follow in 2027. Its European lineup will be the Solterra, Uncharted and E-Outback, and Electrek reports Subaru is open to bringing hybrids back if conditions change.

Modelling for Transport & Environment puts a number on the other path. Fraunhofer ISI estimates the Clean Corporate Vehicles Regulation could deliver up to €48bn in value creation and 344,000 jobs by 2030. Under its moderate scenario, Volkswagen's EU corporate BEV sales rise by about 99,000 vehicles by 2030, offsetting roughly 14% of a planned 700,000-unit production cut.

What to watch

The agenda does not itself change law. Any Franco-German deal on combustion cars still needs the Council and the European Parliament. The Article 4 support rules start on 1 January 2028, and Subaru's EV-only European lineup starts the same year.

Numbers in perspective

September's 31% BEV share compares with 25% year to date and 20% for the whole of 2025. The total market was 1.4 million cars. The 69% zero- and low-emission target for 2030 includes a 45% zero-emission minimum. The 10% combustion allowance after 2035 is a Paris and Berlin proposal, not adopted law.