Europe must cancel its plan to ban new fossil fuel-emitting cars from 2035 to reduce reliance on China's battery supply chain and play to its technological strengths, BMW's chief executive said on Tuesday.

Oliver Zipse, who has long pushed for regulators to permit various technologies - including alternative fuels like e-fuels or biofuels and hydrogen fuel cell cars - said the mood in Europe was "trending towards one of pessimism" and the region needed a new regulatory framework to remain competitive.