---
title: "EU Drops Its 2035 Gas-Powered New-Car Sales Ban: TDS"
date: "2025-12-17"
modified: "2025-12-17"
authors:
  - name: "Joel Feder"
    job_title: "Director of Content and Product"
    link: "https://www.thedrive.com/authors/joel-feder"
url: "https://www.thedrive.com/news/eu-drops-its-2035-gas-powered-new-car-sales-ban-tds"
categories:
  - "News"
  - "Regulations"
  - "The Downshift"
---

# EU Drops Its 2035 Gas-Powered New-Car Sales Ban: TDS

![Car emissions are visible in the cold morning air as southbound traffic makes slow progress on the Northway Wednesday morning Jan. 23, 2013. (Photo by John Carl D'Annibale/Albany Times Union via Getty Images)](<https://www.thedrive.com/wp-content/uploads/2025/09/GettyImages-2087319375-copy.jpg>)
*\<em\>John Carl D'Annibale/Albany Times Union via Getty Images\</em\>*

Good morning and welcome to *The Downshift*, or *TDS* for short.

Short, snappy, and lacking snark, *TDS* gathers the latest automotive news from around the globe and puts it in one place. Stories are summarized in a single sentence accompanied by a link for those seeking more information.

The first cup of coffee is underway, so let's get into it.

🚘 What I’m driving: Spending the week with the 2026 Hyundai Palisade Hybrid, and the model being tested is a loaded Hybrid Calligraphy trim, which costs $60,625. It's a new era for Hyundai, but I have to say this thing is shockingly nice and feels like it's competing with more premium vehicles.

💨 The EU dropped its gas-powered new-car sales ban that was set for 2035 and [replaced it with a target reduction of 90% of car-emitted C02 ](<https://www.reuters.com/business/autos-transportation/eu-relent-combustion-engines-ban-after-auto-industry-pressure-2025-12-16/>)by the same year; the EU's EV policy shift is being seen as possibly benefiting Chinese automakers in the future, but the move still needs approval by EU governments and the European Parliament.

🧑‍⚖️ A group of 16 states, along with the District of Columbia, is [suing the U.S. Government](<https://www.reuters.com/business/autos-transportation/16-states-sue-trump-administration-suspending-ev-charging-infrastructure-2025-12-16/>) because the Trump Administration suspended two grant programs for EV charging infrastructure, both of which were part of the $1 trillion infrastructure programs enacted in 2022 by Congress.

🪛 California put the screws to Tesla and gave the automaker 90 days to [change its misleading Autopilot marketing](<https://www.reuters.com/legal/litigation/california-regulator-allows-tesla-continue-sales-state-now-2025-12-17/>) or confirm its cars can operate without an active human monitoring the vehicle.

🧾 Colorado [gave Scout Motors a license to sell](<https://www.autonews.com/volkswagen/scout/an-scout-colorado-dealer-license-approved-1216/?utm_id=gfta-ur-251217&share-code=RM37MMS7MJCZ7HOSKLSDPXMLIM&user_id=4532198&customer_secondary_source=aac_articleGifting>) its vehicles directly to consumers, a move that is sure to irritate the dealer contingent.

🔑 Hyundai and Kia have agreed to [retrofit 4 million U.S. vehicles to address theft concerns](<https://www.autonews.com/hyundai/an-hyundai-kia-to-retrofit-vehicles-to-adress-theft-concerns-1216/?utm_id=gfta-ur-251217&share-code=GHYMQLVV3RERRFLZIKZ5XNWCMU&user_id=4532198&customer_secondary_source=aac_articleGifting>) and install prevention equipment on all new vehicles in order to resolve an investigation by a group of 35 attorneys general.

🐆 Jaguar confirmed its new EV, which will relaunch the brand in 2026, is a [tri-motor 1,000-horsepower](<https://www.topgear.com/car-reviews/jaguar-type-00-electric-car>) four-door hatchback with rear-wheel steering and huge wheelbase; the automaker also confirmed this new car will [cost about £120,000,](<https://www.autocar.co.uk/car-news/new-cars/jaguar-boss-we-didnt-take-time-explain-why-we-had-change>) which with today's exchange rate would make the car about $160,000.

*Have feedback on the formatting of TDS? Send us a note: tips@thedrive.com*

## Author
Overseeing what you see, read, touch, hear, and interact with from the vast lakes of Minnesota, Joel Feder shapes how The Drive looks and operates as the head of content and product initiatives. On a daily basis, Joel leads the newsroom and editorial staff playing point on both short-term coverage and long-term strategic plans. His mission is to help ensure The Drive shapes the future of automotive media by helping the team execute original reporting, breaking news, and exclusive opportunities. Regarded as an industry insider and recognized by colleagues, fellow journalists, and manufacturers as a point-person and leader in the industry, Joel owns and runs the largest automotive professionals group on Facebook in an effort to serve and help others. Joel serves as a juror for the World Car Awards. In addition, he is the board chair and chair of the governance and nominating committee for Move Forward MN, a local non-profit that helps at-risk youth with barrier-free mental health and housing services. While you’re reading this he’s either on his computer or iPhone chasing the latest news or drafting a story.

### Author social links  
[Instagram](<https://www.instagram.com/joelfeder/>)  
[LinkedIn](<https://www.linkedin.com/in/joelfeder/>)  
[Bluesky](<https://bsky.app/profile/joelfeder.bsky.social>)  
[Email](<mailto:joel@thedrive.com>)