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The Future of Ice Vehicle Sales in the EU After 2035

The future of ICE vehicle sales in the EU after 2035

Find out what the 2035 EU petrol and diesel car ban means for car dealers, how it affects ICE and hybrid sales, and how to prepare your stock.

Kluczowe wnioski

The 2035 EU petrol and diesel car ban applies only to new sales. Used ICE cars will remain legal and in demand.
Hybrids and plug-in hybrids are also included in the ban.
Dealers can expect strong demand for used ICE cars in the coming years, but it’s smart to start introducing EVs in their stock.
Regional differences matter. ICE cars are expected to stay popular longer in Eastern and Southern Europe.

The EU has officially set 2035 as the year when new petrol and diesel cars will no longer be sold. The idea behind this ban is to cut emissions and speed up the shift to electric cars, but many car industry businesses and customers are asking what this really means for them.

Fortunately, there’s still plenty of time to adjust, especially since the used market will stay strong even after 2035.

For now, the most important step is to stay informed, so let’s see what the internal-combustion engine (ICE) ban actually includes, what it doesn’t, and how traders can prepare.

2035 ICE ban

More than ten million cars are sold each year in the EU. From 2035, new petrol and diesel cars won’t be part of those numbers anymore, as the EU has decided to stop their sales.

This is directly connected with the stricter CO₂ emission restrictions for cars in 2025 already in place across the EU.

The car market is already changing, with hybrids now making up the biggest share of new registrations, followed by petrol, battery-electric vehicles, diesel, and plug-in hybrids.

Source: ACEA

This shift shows why the EU has introduced the ban: the goal is for all new cars sold after 2035 to be zero-emission.

The legislation entered into force in 2023, and it will be carried out across all EU members.

Petrol and diesel ban

The most prominent part of the 2035 regulation is the ban on new petrol and diesel cars. For car dealers, this doesn’t mean petrol and diesel disappear overnight, because it only applies to new sales, not the used market.

New ICE sales ban specifics

From 2035, manufacturers will no longer be allowed to sell new cars or vans with internal combustion engines that produce CO₂ emissions.

The ultimate goal is to reach climate neutrality by 2050, and since most cars stay on the road for about 15 years, the EU set 2035 as the deadline to stop sales of new petrol and diesel cars.

Hybrid vehicles future

You might now be asking what will happen with hybrid cars.

Although they’re partially electric, they still burn fuel and produce emissions. Because of that, hybrids and plug-in hybrids are also included in the 2035 ban.

Until then, we’re expecting them to stay popular, especially with buyers who want lower fuel costs without going fully electric.

Are there any loopholes for new ICE cars?

Although the 2035 ban is firmly in place, there might be limited space for some exceptions.

For instance, the German Association for the Automotive Industry has been lobbying for the use of synthetic e-fuels, saying that cars running only on CO₂ neutral fuels should still be allowed after 2035.

Since these solutions aren’t practical for everyday use with current technology, it’s safest to assume there won’t be any real loopholes.

So, in practice, you should count on all new petrol and diesel ICE vehicles being unavailable after 2035.

Should we prepare for the used ICE market boom?

Alright, there are ten years until the ban. Still, it’s better to start preparing now rather than wait until the last moment.

Even after 2035, millions of petrol and diesel cars will still be on the roads, so the demand for used petrol and diesel cars is likely to rise, at least in the first years after the ban.

That’s why securing the right stock early matters, and platforms like eCarsTrade can help you stay ahead of competitors.

Get ahead of the competition with deals on eCarsTrade

One way to prepare is to secure good stock early. Now, you should think about what good stock means for your local market.

Since used ICE cars will remain legal, you might want to keep a steady supply of diesel and petrol models.

At the same time, since we know that the shift to zero-emission cars is inevitable, it makes sense to start introducing EVs into your inventory. Even a small but growing selection of used EVs will help you learn the market.

Either way, eCarsTrade makes it simple to source both ICE and EV models through transparent auctions.

Depending on your current goals, you can filter the cars by fuel and find the stock that fits your dealership the best.

And as hundreds of cars are added to auctions weekly, you’ll always have fresh options to choose from, and you’ll be able to react quickly to changes in demand.

Regional differences - where will ICE cars remain popular?

If you look at the regional trends in EV adoption, you’ll notice that Western and Northern Europe have the highest market shares for electric cars and a more developed charging infrastructure.

The PHEV and EV market share chart by ICCT shows this clearly. Countries like Norway, Denmark, and Sweden are already far above the EU market average in EV adoption.

Source: ICCT

But in parts of Eastern and Southern Europe, where charging infrastructure is less developed and buyers are more cautious about prices, petrol and diesel cars will remain popular for much longer.

For traders, this means there are opportunities to move stock across borders and supply ICE cars to markets where demand will stay strong even past 2035.

10-year strategic plan for your business

We’ve mentioned the importance of preparing your dealership on time. So, here are some practical steps you can take over the next decade to stay ready for 2035.

► Take opportunities to invest in your inventory

Focus on sourcing cars that will still sell well in five to ten years. That includes fuel-efficient ICE cars, hybrids, and electric models that are already showing strong resale value.

► Invest in your sales team

Your sales team needs to be ready to explain the upcoming changes to customers. Training them on EVs, hybrids, and new regulations will help you build trust and make sales.

► Monitor quarterly demand trends

Staying on top of sales data and car market predictions will help you notice changes early. If you check demand every quarter, you’ll always be able to adjust your stock in time.

► Start preparing your fleet for transition already

It’s safe to say that the most successful dealerships in 2035 will be those with experience in both ICE and EV markets. That’s why you should start introducing EVs into your fleet now, while continuing to profit from ICE sales.

Revenue streams to build for 2035

The fact that new ICE cars won’t be sold anymore doesn’t mean your business will run out of opportunities for profits. We’re bringing you an overview of revenue streams worth considering to stay profitable after 2035.

Car parts for used cars	ICE cars will stay on the road for years after the ban, so parts and maintenance will be in high demand.
Reconditioning damaged cars	Repairing and reselling older ICE cars can become a profitable niche as buyers in Eastern and Southern Europe look for affordable options.
Pivot from B2C to B2B	Business buyers, fleets, and rental companies may offer steadier demand than private customers.
Discovering new niches	If your competitors focus on Chinese EVs, you can stand out with classics, Japanese imports, or other specialty cars.

FAQ

► Will my ICE inventory become worthless?

No. Used ICE cars will remain legal and in demand well after 2035.

► Is it too late to invest in petrol or diesel inventory?

It’s not too late! There’s still steady demand, and it will be there for many years leading up to 2035 and even after.

► What’s the biggest risk for a used car dealership?

The biggest risk for used car dealerships is waiting too long before adjusting their stock and sales strategies to match the shift from ICE to EV demand.

► What's the biggest opportunity?

The biggest opportunity is making the most of the strong demand for used petrol and diesel cars in the next few years, while gradually learning how to sell and manage EVs for the future.