Starting this year the European Union is cutting the average carbon emissions that new vehicles sold in the 27-country bloc are permitted to produce, with steep fines if carmakers fail to comply.

But the European Union has also made it a priority to bolster key sectors -- including automobile manufacturing -- in the face of fierce US and Chinese competition.

Part of that effort includes loosening rules to give companies breathing room, including the reprieve approved in Strasbourg by a 458 to 101 majority of EU lawmakers.

Under the scheme put forward in March by European Commission head Ursula von der Leyen, companies will be able to comply with the new targets by averaging their emissions over three years from 2025 to 2027, rather than each individual year.

This means they will not be fined if they fail to meet the 2025 target by December 31 this year.

The European Automobile Manufacturers' Association (ACEA) welcomed the vote, saying the mechanism provided "much-needed flexibility in meeting CO2 targets at this important moment in our transition toward zero-emission mobility."

The parliament's biggest political grouping, the conservative EPP, hailed the vote, with lawmaker Laurent Castillo calling it "a first step to strengthen the European automobile market".

The French MEP said the next step would be to revise the EU's plans to phase out new sales of combustion engine vehicles by 2035.

The measure passed with support from the parliament's centrist and socialist groups.

Criticizing the move, Green EU lawmaker Saskia Bricmont said loosening emissions rules would "delay the marketing of affordable electric vehicles, which are vital" for European consumers.

"This is incomprehensible. It is yet another step back in the fight against climate change," Belgium's Bricmont said in a statement.

The far-right Patriots group meanwhile described the three-year flexibility as "insufficient", urging the "complete repeal" of the EU's penalty mechanism.