‘Spectacular’ EV sales weaken pressure to shelve combustion-engine ban, EU climate chief says

A “spectacular” rise in electric car sales is weakening political momentum to roll back the EU’s planned ban on combustion engine cars, the bloc’s climate commissioner said on Thursday, as governments laid bare divisions over the policy.

The European commission last year proposed a roll-back of the EU’s effective ban on new combustion-engine cars from 2035 after pressure from Germany, Italy and the auto sector, changing the target to a 90% emissions reduction instead.

Former Nissan chairperson Carlos Ghosn says calls by some shareholders for his return reflect deep anger over years of failed turnaround plans, accusing the carmaker’s leadership of squandering value and losing direction since his 2018 ouster. In an interview, Ghosn said investors had “had enough” after three chief executives failed to revive the company. At Nissan’s annual meeting on Tuesday, CEO Ivan Espinosa faced shareholder anger and a proposal from at least one investor to bring back the fugitive executive — an effort that failed as shareholders overwhelmingly backed the board. “It’s a reaction with plenty of common sense,” Ghosn said. “You can feel the anger and the frustration of the shareholders.” Ghosn led Nissan for nearly two decades and has lived in Lebanon since fleeing Japan in late 2019. He was awaiting trial on financial misconduct charges at the time, which he denies, saying he was the victim of a plot by Nissan executives and Japanese officials. He cited Nissan’s plunging share price, shrinking sales, plant closures and job cuts as evidence of what he described as management failure. Ghosn was widely credited with bringing Nissan back from the brink after a 1999 bailout by France’s Renault. He became a national figure in Japan and one of the world’s best-known executives, though that legacy was later tarnished by multiple allegations of financial misconduct. “Look at the facts. They are dismal,” he said, pointing to an 80% fall in Nissan’s share price since 2018, a drop in annual sales to about 3-million vehicles from more than 5-million, and the company’s weakening financial position. Nissan did not immediately respond to a request for comment. Other major carmakers including Volkswagen and Stellantis have also struggled in recent years with the shift to electrification and competition from lower-cost Chinese rivals. Analysts and Nissan insiders have said Ghosn focused too heavily on sales volumes rather than profitability, leaving Nissan reliant on lower prices and damaging its brand. Espinosa has focused on boosting value, aiming to raise profit per vehicle even as Nissan sells fewer cars. “They just miss the glory times of Nissan,” said Macquarie analyst James Hong of the shareholder proposal. “I’m not sure it makes much economic sense or if it’s a realistic suggestion.” He added the industry had changed considerably since Ghosn’s era. If there is one person or one profile today who can make it happen, it’s mine. I’m not saying it because I’m arrogant. I’m saying it because of the facts. I’ve done it already once. I know the company from all the angles Ghosn said Nissan had drifted into slow decision-making and an overly defensive strategy, retreating from markets instead of confronting intensifying competition. Asked whether he would consider advising Nissan again if circumstances changed, Ghosn said advice would not be enough. “The only job to save the company is a CEO job. It has to be somebody who is really the decision-maker. There is an emergency in Nissan, and tough decisions have to be made,” he said. “If there is one person or one profile today who can make it happen, it’s mine. I’m not saying it because I’m arrogant. I’m saying it because of the facts. I’ve done it already once. I know the company from all the angles.” Ghosn warned that unless Nissan changed course, it risked becoming a small affiliate of a larger company, most likely a Chinese one. He compared Nissan’s position to the crisis before Renault’s 1999 rescue — “but with less hope”. Ghosn — who holds French, Lebanese and Brazilian citizenship — said he regrets accepting another term leading Renault in 2018 and should have retired after achieving his objectives with the alliance. “This was a big mistake.” Reuters

“Some have indeed been saying, both member states and the European parliament, ‘Isn’t this a sign that the status quo was already good enough,’” commissioner for climate Wopke Hoekstra said before a meeting of EU climate ministers in Luxembourg, referring to the original target requiring a 100% cut in CO₂ emissions from cars by 2035.

“The numbers are truly spectacular.... Electric vehicle ​sales, ⁠particularly in the three largest markets, but also second-hand [are] truly very impressive,” Hoekstra said.

Electric vehicle (EV) sales have surged in some countries in recent months, as the US-Israeli war with Iran has driven up oil and fuel prices.

Nearly one in five new passenger and light commercial vehicles sold in South Africa now comes from a Chinese manufacturer, highlighting the remarkable speed at which Chinese brands are gaining ground on established rivals. Chinese vehicle sales jumped 75% year on year in the first quarter of 2026, according to TransUnion, helping lift their market share beyond 19%. TransUnion’s Q1 2026 Mobility Insights Report shows Chinese manufacturers are outperforming both traditional vehicle makers, whose sales grew by just 2%, and the broader passenger and light commercial vehicle market, which expanded by 12.7% during the quarter. The surge is no longer being driven solely by aggressive pricing. Consumers are increasingly being drawn to technology, safety features, fuel efficiency, warranty packages and overall ownership value. Among the biggest beneficiaries is Chery Group, whose combined portfolio of Chery, Jetour, Omoda and Jaecoo brands sold 16,094 vehicles in the first quarter, placing the group among South Africa’s top three automotive players. “The market is moving into a more selective phase,” said Ayesha Hatea, director of research and consulting at TransUnion South Africa. “Consumers are still buying vehicles, but affordability is no longer only about the purchase price. Fuel costs, financing costs, insurance, servicing and total cost of ownership are becoming central to the decision.” Hatea said Chinese manufacturers had evolved beyond being price disruptors and were becoming structural industry players that are influencing dealer networks, financing ecosystems, ownership perceptions and the wider discussion around localisation and industrial competitiveness. The report also points to continued strength in the new vehicle market. New vehicle registrations increased 11.6% year on year in the first quarter, marking a sixth consecutive quarter of double-digit growth, while used vehicle registrations rose by a more modest 2.6%. As a result, the ratio of used-to-new registrations fell to 2.3, the lowest level recorded during the reporting period. New vehicles accounted for 31% of registrations, up from 23% in the final quarter of 2025. Favourable pricing trends have helped support demand. New vehicle inflation slowed to just 0.8%, while used vehicle prices remained in deflationary territory at -1.3%. Consumer confidence also appears to be improving. TransUnion’s Consumer Pulse Survey found that the proportion of consumers planning to buy a vehicle within the next few months rose from 19% in the fourth quarter of 2025 to 22% in the first quarter of 2026. Purchase intentions were strongest among younger buyers, with 26% of Generation Z and 24% of Millennials indicating plans to enter the market. The report notes that residual values are becoming increasingly important as consumers opt for longer finance terms and balloon-payment structures to keep monthly instalments affordable. Vehicles that retain their value well are gaining a competitive advantage, while weaker resale performance could expose owners to refinancing pressure or negative equity when trading in. Powertrain preferences are also evolving. Conventional internal combustion engine vehicles remain the most popular choice, preferred by 49% of consumers, but hybrid vehicles are gaining traction. Interest in hybrids rose to 39% from 30% in the previous quarter, making them the leading electrified option. Interest in both battery-electric and plug-in hybrid vehicles also increased to 26%. “Hybrids are emerging as a practical transition pathway for South African consumers,” said Hatea. “They offer fuel savings and lower running costs without full dependence on charging infrastructure, which makes them relevant in a market where affordability and operating certainty remain critical.” Business Day

EV sales in Europe’s biggest market, Germany, jumped by 39% last month compared with May 2025, data from the non-profit International Council on Clean Transportation showed. France (93%) and Italy (85%) also posted large year-on-year sales increases, though in Poland, EV sales last month dropped by 26%.

EU countries are now negotiating the proposed roll-back and could yet amend it.

Diplomats told Reuters countries were split — with some arguing for smaller changes to the car CO₂ rules, and others seeking to weaken it further than Brussels proposed — and it was not yet clear which side would prevail.

Germany and Italy urged the EU on Thursday to further soften the combustion engine ban, in Italy’s case to allow more vehicles powered by biofuels, rather than going all-in on CO₂-free electric cars.

French carmaker Renault is planning to cut 800 engineering jobs in France by the end of 2027 in a bid to make its organisation leaner to better compete with Chinese rivals. Chinese makers have more than tripled their market share in Europe over the past two years, with technologically advanced products and very competitive prices, Philippe Brunet, Renault’s chief technology officer, told reporters in a conference call. “All other manufacturers are suffering, the Koreans, the Japanese in Europe, or other Europeans, including us,” he added. “We must be able to compete against this.” With a workforce of 5,500, France accounts for half of Renault’s global engineering staff. In mid-April, Renault, one of the smallest legacy car makers, said it planned to reduce its total engineering workforce by 15% to 20% by the end of 2027, and the 800 job cuts would be part of that move. The company expects to get its transformation plan approved by unions in July and implemented from September. It would also include the retraining of 2,500 workers and between 150 and 200 new hires to work mainly on electrifying vehicles, software and AI. Brunet also announced an overhaul of the organisation and working methods to simplify R&D operations and become more agile in the race against Chinese competitors, who have set a new benchmark by developing models in just two years, down from the four to five years traditionally in the industry. “My issue is speed,” he said. He intends to reduce the complexity and the number of steps in a vehicle project and decrease the time spent in meetings by 20%. Reuters

“Having a European strategy focused on one technology is going to put us at risk in the future,” Italy’s environment minister Vannia Gava told the meeting.

France and Sweden were among those to defend the combustion-engine ban, warning that weakening it would delay urgently needed investments to help European EV manufacturers stay competitive.

Weakening the policy after the Iran war’s energy fallout would be a “terrible signal”, French climate minister Monique Barbut said.

Reuters