BERLIN, Sept 5 (Reuters) - BMW Chief Executive

Oliver Zipse said the European Union's planned phase-out of

combustion engines by 2035 was a "big mistake", calling for a

shift to emission measures that capture a vehicle's entire

supply chain.

Zipse said in an interview with Politico, published on

Friday, that setting a fixed date for the transition risked

ignoring emissions across the value chain, including battery

production and fuel sourcing.

He urged EU regulators to allow climate-friendly fuels

beyond 2035, saying fuel producers must also be held

accountable.

"We do ourselves no favours by setting arbitrary future

dates by which all industries must adapt," he said in the

interview, extracts from which were published on Friday morning.

"The absurdity of the current rules is that the fuel makers -

the Shells and the BPs - face no targets."

Despite problems facing the industry such as higher tariffs,

weak demand and Chinese competition, Zipse said BMW remains on

track to sell more than 2.5 million vehicles in 2025. "We are

ahead of last year's numbers as of August," he said, noting

growth particularly in Europe.

He was speaking ahead of the IAA motor show in Munich,

Europe's biggest, at which the Bavarian-based company will

launch the first model of a new class of electric vehicles.

(Reporting by Thomas Escritt; Editing by Emelia

Sithole-Matarise)