The EPP said it also wanted to allow development of “cutting-edge combustion technology”.
Its proposals will pile pressure on Ursula von der Leyen, the president of the European Commission, who is seeking to win support from the European Parliament amid a recent surge by Right-wing parties.
Her job has become harder following a row with Italian prime minister Giorgia Meloni, which has weakened her support among European MPs.
The EPP won the biggest share of any group in last month’s European Parliament poll with 188 out of the total 720 lawmakers, cementing its influence in the assembly.
At a meeting in Portugal this week, lawmakers from the group are discussing their aims for the parliament’s latest five-year term.
They are pursuing the policy change against the backdrop of slowing electric vehicle sales in Europe.
Official figures revealed that sales for new electric cars fell by 30pc in Germany in May, which led to a broader fall of 12.5pc across the Continent.