Is Europe Returning to Internal Combustion Engines?

Electric vehicles have long been at the center of Europe’s automotive vision. The plan to ban the sale of new internal combustion engine vehicles after 2035 initially appeared to set a clear political and industrial direction. However, developments over the past two years have shown that this transition may not be as linear as expected. Market slowdown, rising battery costs, infrastructure shortcomings, and especially the aggressive impact of Chinese competition have forced a reassessment of strategy. Europe is now facing a new question: Is a fully electric transition truly feasible, or will hybrid and combustion engines remain in our lives longer than anticipated?

Electric vehicle sales slowed significantly in 2024 and 2025. European automakers emphasize that consumer demand has weakened and that the withdrawal of incentives has had a direct impact on purchasing behavior. During the same period, the revision of the 2035 ban was officially opened for discussion in Brussels. This development clearly highlighted the risks of locking the transition trajectory into a single scenario.

The picture on the supply chain side is even more complex. Battery production is still largely dependent on China-centered chains, and costs in Europe have not yet reached a competitive level. The strong entry of Chinese manufacturers into the European market with low-cost models has pushed European brands to reconsider their strategies. Many automakers are re-evaluating previously all-electric product plans, repositioning hybrid and plug-in hybrid technologies as transition solutions. Some major manufacturers have officially suspended their previously announced targets of producing only electric vehicles by 2030.

For factories, suppliers, and production planners, this transition requires operating multi-technology environments simultaneously. A mixed scheduling era has begun, where ICE + hybrid + EV production must be planned and managed together. Capacity planning, material supply security, rare metal price instability, and production flow optimization have become strategically critical. The issue is no longer just vehicle sales, but the resilience and cost efficiency of production systems. Scheduling software and simulation-based planning tools are shifting from support instruments to key elements of competitive advantage.

This change will also reshape the aftermarket. Ten years ago, no one talked about battery lifecycle management, software updates, or sensor calibration as service categories. Today, maintenance planning itself has become data-driven. Any delay in the production chain now creates domino effects on the service side.

Ultimately, Europe has not abandoned its electric vehicle objective. But the pace, scope, and method of transition are being redesigned. This is not a return to internal combustion engines, but rather a more realistic transition strategy. The new roadmap is being built around competitiveness, cost, supply chain resilience, and consumer realities. The next phase will be defined not only by battery technology, but by planning discipline, strategic flexibility, and production flow management.