End of all-electric by 2035: Europe reshuffles the deck and validates the Citroën ë-C3 strategy

The wait has been long and particularly intense for all players in the automotive industry. Initially expected on December 10, the crucial announcements for the future of mobility on the Old Continent were finally made official six days behind the original schedule. On Tuesday, December 16, 2025, the European Commission unveiled the highly anticipated "European Automotive Package."

These few days of delay testify to the intensity of discussions behind the scenes and the colossal stakes of this new roadmap. While the industry feared a dogmatic maintenance of previous deadlines, Brussels has chosen the path of pragmatism by offering a breath of fresh air to manufacturers. The famous 2035 deadline, which crystallized all tensions, is maintained, but its contours are profoundly redrawn to offer more technological flexibility. Here is a breakdown of these announcements that could well mark the beginning of a new era for the industry, and particularly for generalist brands like Citroën.

2035: Towards a regained technological neutrality

This is the flagship announcement of December 16, 2025: the European Commission has revised its ambitions regarding powertrains, moving away from the strict "all-electric" path that seemed inevitable. While the decarbonization goal remains, the outright ban on the sale of new internal combustion vehicles in 2035 is no longer on the agenda in its initial form. Stéphane Séjourné, Vice-President of the Commission, confirmed that calculation methods have evolved to introduce major flexibilities.

In practice, the target imposed on manufacturers is no longer a 100% reduction in emissions, but a 90% reduction in "tailpipe" emissions. This 10% nuance radically changes the industrial game. It allows manufacturers to no longer rely solely on battery electric or hydrogen propulsion but to reintegrate alternative technologies into their future ranges. Thus, Plug-in Hybrid Vehicles (PHEV), Mild Hybrids (MHEV), and especially Range Extender Electric Vehicles (REEV) regain their legitimacy beyond the next decade. Even the classic internal combustion engine could survive under certain strict conditions.

However, this flexibility is not a blank check. To compensate for the remaining 10% of tailpipe emissions allowed, manufacturers will have to commit to other ecological fronts. The Commission mandates the use of low-carbon steel, known as "green steel," produced within the European Union, or the use of sustainable fuels. It is a trade-off: mechanical tolerance in exchange for a virtuous industrial commitment to materials. This approach maintains the global climate objective while giving engineers the freedom to propose varied solutions, adapted to uses where 100% electric still shows its limits, such as long highway journeys without extended charging stops.

Competitiveness and simplification: the "Battery Booster" and the omnibus law

Beyond engine regulations, yesterday's announcements explicitly aim to restore the competitiveness of European manufacturers in the face of fierce global competition. The observation made by Stéphane Séjourné last March was alarming, evoking a "danger of death" for the European industry faced with declining volumes and market shares. Brussels' response aims to be massive and structured around financial and administrative support.

The first pillar of this support is the "Battery Booster" plan. Endowed with a budget of 1.8 billion euros, this mechanism aims to secure and accelerate battery production on European soil. Of this sum, 1.5 billion euros will be allocated in the form of interest-free loans to cell producers. The goal is clear: to create a sovereign value chain, from material extraction to assembly, to reduce dependence on Asian suppliers and ensure that value-added remains in Europe. For a group like Stellantis, which invests heavily in its gigafactories, this support is an essential lever to lower the final cost of vehicles.

Simultaneously, the Commission presented the "Automotive Omnibus Law." Behind this technical name lies a measure eagerly awaited by industry captains: administrative simplification. This text aims to lighten the regulatory burden weighing on manufacturers, promising an estimated saving of 706 million euros per year for the sector. By reducing formalities, streamlining homologation tests, and limiting the introduction of minor but costly new rules, Europe wants to give agility back to its companies. This reduction in fixed charges is a direct lever to improve profitability and, ultimately, investment capacity in innovation. Furthermore, the Commission has also outlined the contours of a new approach to democratize electric mobility, thus responding to growing consumer demand for more accessible vehicles.

"Small Affordable Cars": Europe validates Citroën's vision

The third part of this automotive package resonates particularly strongly for us, enthusiasts of the double chevron brand. Indeed, the European Commission has made official the creation of a new administrative category of vehicles: "Small Affordable Cars," classified under the code "M1-e." This decision follows the call made by Ursula von der Leyen last September for a small, European, and cheap electric car.

The criteria defined for this category seem to have been modeled on the specifications of Citroën's latest release. These are electric vehicles less than 4.20 meters long, intended to be produced in Europe. To encourage their growth, Brussels promises a lightened regulatory framework for ten years, avoiding the addition of costly new technical constraints. In addition, these vehicles will benefit from "super credits" in the calculation of manufacturers' CO2 emissions and concrete customer advantages: enhanced ecological bonuses, reduced parking rates, or cheaper tolls.

Reading these lines, it is difficult not to see a striking validation of Citroën's strategy. With the new ë-C3, the brand has once again demonstrated its pioneering spirit. Long before Europe legislated, Citroën designed a vehicle meeting these requirements point by point: a compact car (4.01 m), produced in Europe (at the Trnava plant), and above all, affordable. The Urban Range version, offering 213 km of range and priced at €19,990 without government subsidies, fits perfectly into this new M1-e category.

While other manufacturers will have to start from a blank sheet to meet this European demand, Citroën already has a mature and commercialized offer. The brand anticipated the need to democratize electric vehicles, proving that accessibility is not incompatible with comfort and modernity. This head start could prove decisive in the coming months, as tax incentives will boost this specific segment.

A welcome pragmatism but pending issues

Everything is not perfect in the European Commission's announcements, which had to engage in a complex balancing act to reconcile climate imperatives, industrial realities, and political divergences between Member States. Some environmentalists will undoubtedly regret the abandonment of the 100% zero tailpipe emission target, while some industrialists might have wished for more distant postponements.

However, the main point lies elsewhere. Flexibility and technological choice are permitted once again. Manufacturers will no longer be obliged to offer only battery electric engines, a technical monoculture that presented major industrial and social risks. By opening the way to sustainable fuels, hybrids, and range extenders, Europe allows for better meeting the real and varied needs of consumers while maintaining the course on decarbonization via green steel.

This new deal offers interesting perspectives for popular brands like Citroën, which will be able to continue offering versatile and affordable mobility solutions. Note, however, that the picture is not yet complete: specific announcements regarding commercial vehicles, a segment where Citroën historically excels, have been postponed to the end of January. We will therefore have to wait a little longer to know the full set of rules that will govern tomorrow's mobility.