The car industry has soured on the EU’s plan to ease the 2035 ban on combustion engines as details have become clearer, with some executives warning the “disastrous” changes would lead to more expensive vehicles.

Brussels said on Tuesday it would scrap a law forcing carmakers to cut their emissions to zero by 2035. While carmakers will be allowed to carry on releasing 10 per cent of their 2021 emissions and to continue selling some petrol engines and hybrids, the European Commission has mandated that the emissions be offset by using low-carbon steel and sustainable fuels.

The softening of the 2035 ban was meant to be a hard-won victory for carmakers after months of intense lobbying. Although it was initially welcomed by some carmakers, many companies said the offsets would be too challenging to bring in since the required use of green steel and “made in Europe” content in vehicles would be complex and expensive.