The boss of one of the largest car manufacturers in the world has called on the European Union to roll back the planned ban of new petrol and diesel cars, warning of grave consequences for the market.

Oliver Zipse, chief executive of BMW, described the planned phase-out of internal combustion engine vehicles by 2035 as a "big mistake".

As opposed to a ban on internal combustion engines, he suggested that a vehicle could be judged on the emissions output along its entire supply chain.

Speaking to Politico, Zipse said a fixed date for the phase-out of petrol and diesel risked ignoring emissions in other facets of vehicle production.

The boss of BMW said the 2035 petrol and diesel car sales ban was a 'big mistake'

Issues have been highlighted by experts around the process of producing an electric vehicle battery, which can be incredibly carbon-intensive when mining key materials.

Many brands have also been criticised for powering manufacturing plants with fossil fuels and coal, despite net zero rules being in place for most countries.

Zipse called for EU regulators to give the green light to climate-friendly fuels, often referred to as e-fuels, to help ease the transition between ICE and electric cars.

As part of this, the 61-year-old called on the world's major fuel producers to be held accountable in the switch to cleaner forms of energy.

He said: "We do ourselves no favours by setting arbitrary future dates by which all industries must adapt.

"The absurdity of the current rules is that the fuel makers - the Shells and the BPs - face no targets."

The European Union aims to cut emissions from cars by 55 per cent and 50 per cent for vans by the end of the decade as part of its climate neutrality goal by 2050.

Jan Huitema, a Dutch MEP who has led the charge to slash emissions across the transport sector, said people will still be able to buy and sell second-hand ICE cars, although running costs could increase.

When the EU confirmed its 2035 ban deadline, it acknowledged a call for "methodology for assessing the full life-cycle of CO2 emissions".

Documents from the European Parliament outlined that the assessment of full life-cycle emissions would also look at the fuels and energy consumed by vehicles.

Zipse also confirmed that BMW remains on track to sell more than 2.5 million vehicles this year.

This is despite huge disruptions to the German manufacturing giant, including stiff competition from China, weak demand for electric vehicles and higher tariffs introduced by US President Donald Trump.

BMW CEO Oliver Zipse said the brand is expected to see 2.5 million vehicles sold in 2025

Mr Zipse confirmed that BMW was "ahead of last year's numbers as of August", with particular growth in the European market.

BMW is set to unveil a number of new electric vehicles at the IAA Mobility event in Munich later this month as it looks to take advantage of growing demand for the brand.

In the UK, BMW remains one of the most popular manufacturers, with almost 79,000 vehicles sold, according to new data from the Society of Motor Manufacturers and Traders (SMMT).

While sales have fallen 6.28 per cent compared to the same time last year, its offering has allowed the brand to retain an impressive market share of 5.3 per cent.