A European crackdown on petrol cars will trigger a “massive shrinking” of the Continent’s vast automotive industry, the boss of BMW has claimed.

Speaking at the Paris Automotive Show, Oliver Zipse warned that new rules leading to a ban on combustion engine vehicles by 2035 would put Europe’s carmakers at a disadvantage compared to their Chinese rivals.

His warning came as France revealed it was pushing for “flexibility” on European Union regulations ahead of their introduction next year.

In 2023, EU leaders approved laws that effectively banned the sale of petrol and diesel cars by the end of 2035.

It means the average amount of carbon dioxide emitted by new cars must fall by 15pc in 2025, 55pc in 2030, and 100pc in 2035.

But on Tuesday, Mr Zipse claimed the regulations were “no longer realistic” as demand for electric vehicles (EV) in Europe stalls and domestic carmakers lag behind their Chinese peers on cost and battery technology.

He warned the rules “could threaten the European automotive industry in its heart”, adding that “with today’s assumptions, [it will] lead to a massive shrinking of the industry as a whole”.

Mr Zipse also claimed that the rules – which he said should be relaxed – could end up benefiting Chinese manufacturers.

“A correction of the 100pc EV target for 2035 … would also afford European [manufacturers] less reliance on China for batteries,” he said.

The comments reflect the huge unease among traditional European car manufacturers that have been slow to develop electric car ranges and now face a slowdown in demand for EVs in major markets such as Germany and France.

On the other hand, carmakers also face tough competition from the arrival of ultra low-cost Chinese alternatives.

In China, where manufacturers have benefitted from state support and are engaged in brutal price wars, the cost of EVs has come down dramatically with the most popular models now selling for less than £8,000 each.

That has helped EVs take more than half of China’s new car market in recent months.

But it has also driven Chinese manufacturers to seek out more profitable sales abroad in markets like Europe.

The EU has slapped steep trade tariffs on major companies including MG owner SAIC, Geely parent Polestar and BYD in an attempt to compensate for what Brussels has described as “unfair” state subsidies they received.

However, many experts now simply expect Chinese brands to set up factories in Europe to avoid the extra taxes.

Against this backdrop, French economy minister Antoine Armand said France was sounding out fellow EU countries to see what could be done on the EU’s 2025 carbon emissions standards.

Carmakers who breach the rules could be hit with multimillion-euro fines.

“You can’t have sanctions without taking into account the economic context and the development of our industry in France and in Europe,” Mr Armand said.

“We’re exploring what flexibility there can be in cooperation with our European partners who are the most engaged on this question.”