Electric cars once seemed poised to end the era of internal combustion engines. In many parts of the world, sales of internal combustion vehicles are set to be banned by 2030 and beyond. Many manufacturers had aligned their future plans accordingly. However, it seems that the wind is starting to shift.
Decline in Electric Vehicle Demand
Many manufacturers are stepping back from some of their plans due to the declining demand for electric vehicles (EVs). Global suppliers confirm this trend. Laurent Favre, CEO of OPmobility, one such supplier, noted that manufacturers are producing far fewer EVs than expected. Favre mentioned that the supplier had to adjust its working balance accordingly, and interest has already shifted to other models.
Shift to Hybrid and Plug-In Hybrid Vehicles
According to Favre, there is a significant increase in demand for hybrid and plug-in hybrid models. In the U.S., even customers who initially wanted to switch directly to electric vehicles are now focusing on hybrid and plug-in hybrid technologies.
Major Manufacturers Reevaluate Their Plans
The declining global interest in electric vehicles is affecting major car manufacturers as well. Mercedes-Benz announced that it would reassess its 2030 plans. Volkswagen Group also announced a step back from battery facility investments. Ford declared that it would accelerate the production of the Super Duty F-Series, putting its electric SUV plans aside.