German court clears BMW and Mercedes-Benz to sell petrol cars beyond 2030

Germany's highest appeals court has rejected lawsuits aimed at stopping BMW and Mercedes-Benz from selling new petrol and diesel cars after 2030. The ruling, delivered on March 2, 2026, in Karlsruhe, dismissed claims by the environmental group Deutsche Umwelthilfe (DUH). The decision marks the end of a legal push to enforce stricter climate rules on individual carmakers.

The Deutsche Umwelthilfe had argued that BMW and Mercedes-Benz should be barred from producing or selling combustion-engine vehicles beyond November 2030. Their case relied on the idea of a 'carbon budget'—a limit on emissions assigned to each company. However, the Bundesgerichtshof ruled that no such budget had ever been legally allocated to individual firms.

Both automakers responded positively to the verdict. They described it as a confirmation of 'legal certainty' for businesses in Germany. In separate statements, BMW and Mercedes-Benz also reaffirmed their ongoing efforts toward sustainability. This ruling follows a pattern of similar cases brought by DUH against the two carmakers. No other German companies or industries have faced comparable lawsuits targeting combustion engine production or sales.

The court's decision removes a legal threat to BMW and Mercedes-Benz over their petrol and diesel vehicles. The ruling clarifies that climate targets cannot be enforced through individual corporate carbon budgets under current law. For now, the two manufacturers will continue their existing production plans while pursuing sustainability goals.