The European Commission unveiled a plan on Tuesday to drop the EU’s effective ban on new combustion-engine cars from 2035 after pressure from the region’s auto sector, marking the bloc’s biggest retreat from its green policies in recent years.

The move, which still needs approval from EU governments and the European Parliament, would allow continued sales of some non-electric vehicles. Carmakers in regional industrial powerhouse Germany and in Italy had sought easing of the rules.

The EU executive appears to have bowed to calls from carmakers to keep selling plug-in hybrids and range extenders that burn fuel as they struggle to compete against Tesla, opens new tab and Chinese electric vehicle makers.