At least 12 leading global automakers have announced reductions in their planned electric vehicle production volumes. The reason is the sustained demand for internal combustion engine vehicles, as well as a decrease in government support for the transition to electric transport in the USA and Europe.
This is reported by Finway
Changes in Strategies of Leading Brands
Last week, the Japanese company Honda officially abandoned its intention to completely cease production of internal combustion engine vehicles by 2040. Additionally, the company forecasts losses of 16 billion USD over the next two years due to a revision of its electric vehicle strategy.
Automakers such as Mercedes-Benz, Ford, Stellantis, and Volvo Cars have also adjusted their plans. They have reduced targets for the production of fully electric models. Among luxury brands, Rolls-Royce, which is part of BMW, announced this week that it will continue to produce vehicles with traditional engines even after 2030.
Withdrawal from Ambitious Electric Vehicle Projects
Bentley, Lotus, Audi, and Porsche have already scaled back their plans for a full or partial (up to 80%) transition to electric drive over the next decade. Lamborghini, owned by Volkswagen, has also recently revised its intentions: the company has postponed the launch of its first fully electric vehicle, the Lanzador, to 2030. Instead, the model will be released as a hybrid with plug-in capability.
“Since Donald Trump returned to power, the U.S. presidential administration has canceled federal tax incentives for people purchasing electric vehicles, cut funding for investment in charging infrastructure, and weakened vehicle emissions targets.”
The European Union has also relaxed its own environmental standards regarding transport emissions. It is estimated that the revised strategies, along with the cancellation of new model launches and investment programs, have already cost the global automotive industry at least 75 billion USD over the past year.
Despite the overall trend of scaling back electrification projects, some automakers continue their innovative activities. In particular, the German company BMW unveiled the new 2026 BMW i3 electric car in Munich, featuring a range of up to 900 km.