Uncertainty in the electric car sales is making many brands rethink their strategy. Many car manufacturers are backtracking on its goals sales of electric cars in the face of demand that, in the United States and especially in Europe, has been stagnating in recent months.
In principle, the ban on the sale of new petrol cars will come into force in Europe in 2035. That is if it is not postponed or even abandoned in 2026, the year in which a review of this regulation is planned. Given the decline in sales in some European markets and the commitment to hybrids at the same time as brands are lowering their sales targets for electric cars, it seems that Brands are preparing for a scenario where the ban will be delayed.
These are the brands that have reconsidered their strategies regarding electric cars
From Aston Martin to Volvo, Mercedes and Volkswagen, we review the list of almost all Western, Japanese and Korean brands that have revised downwards their sales targets for electric cars. In some cases, with immediate consequences for the continuity of factories or models.
Toyota Toyota has the reputation of not being a brand that has bet on the electric car with the same enthusiasm as the rest of the industry. In fact, in 2023 it sold more than 100,000 electric cars, which represents less than 1% of the 11 million cars it sold last year. And yet, it is one of the brands that is closest to achieving industrialization of solid-state batteries, but that will not be until 2027 or 2030. The Japanese brand is taking things slowly. And now, even more slowly.
Toyota maintains its intention to produce 1.5 million electric cars per year by 2026 and 3.5 million by 2030. However, it specified that these figures were not targets, but rather benchmarks for shareholders. A benchmark that would mean reaching the production of Tesla or BYD in less than two years.
Hyundaithe world’s third-largest carmaker, is going to Double the number of its models with hybrid enginesgoing from 7 to 14 models. Hyundai thus increases its global sales target for hybrid cars by 40%, to 1.33 million units in 2028. But it does not abandon its objective of selling 2 million electric cars by 2030. More hybrids, yes, but maintaining its commitment to electric cars.
Mercedeswhich began paralyzing development any new gasoline engine has had to lower and delay its electric sales targets. The man considered the inventor of the automobile said in February that electric and hybrid vehicle sales would account for up to 50% of total sales by 2030. He has pushed back his cautious target by about five years, as he had hoped to reach that goal within a few months, in 2025.
While it is having relative success with its entry-level models, such as the Mercedes EQA, its electric flagship, the EQS, is being a commercial failure. They reach the market as registered by dealers and lose the half its value in less than a yearIt has also slowed its battery cell capacity plans as demand for electric cars falters.
Ford In August, the company cut the percentage of planned annual capital spending devoted to electrics to 30% from 40%, given its increasing emphasis on hybrids. It canceled an electric seven-seat SUV and delayed the arrival of the new Ford F-150 lightningwhile in Europe it must turn to Volkswagen to be able to have new electric models beyond the Ford Mustang Mach-e, such as the Ford Explorer or the Ford Capri.
In the group Stellantisthere are several models that were supposed to be electric-only in most of their markets, such as the Jeep Avenger or the Fiat 600, and have ended up being essentially hybrids with few electric sales. The situation of some electric models is somewhat dramatic, such as the Opel Corsa E or the Fiat 500 electric, whose sales are collapsing. In the case of the latter, Fiat has even decided to pause production of the Fiat 500e for four weeks due to lack of demand.
As for Renault, in early 2022, CEO Luca De Meo said that all Renault brand sales in Europe would be fully electric by 2030, but two years later the target changed when the brand’s CEO Fabrice Cambolive told Automotive News Europe that Renault was considering a dual strategy of offering electric and combustion engine cars for the next 10 years, therefore, beyond 2030.
But without a doubt the two most striking cases are those of Volkswagen and Volvo, two historic brands that have been the first to bet everything on electric cars and the most vocal about it. The Swedish brand claimed to be able to sell 50% electric cars by 2025 and the 100% electric cars by 2030. That ambitious goal has cooled: now it announces just the opposite, that will delay your plans to be a 100% electric brand. To do this, it will also rely on hybrids, as other manufacturers are doing.
In the case of Volkswagen, the situation seems a bit dramatic when its financial director gives it Two years to get back on track before the damage becomes irreversible. To achieve this, the group’s management wants to close two car factories, one in Belgium and one in Germany, with the massive layoffs that this entails.
Luxury brands are not convincing with their electric cars either
Luxury manufacturers are not immune to the cold shower of electric car acceptance in Europe. Aston Martin said in February it expected to launch its first next-generation electric car in 2026, down from previous plans to launch next year. “Consumer demand (for BEVs), at least in the Aston Martin price range, is not what we thought it would be two years ago,” said chief executive Lawrence Stroll.
Bentley, which had hoped to have a full EV range by 2030, has postponed that target without committing to a new date. In March, then-CEO Adrian Hallmark said the plan had been delayed to focus on plug-in hybrid (PHEV) models.
At Porsche, despite launching new electric models such as the Porsche Macan, the premium brand has lowered its EV ambitions, saying it could only achieve its previously announced target of 80% all-electric vehicle sales by 2030 if demand and the development of the EV sector justified it. And in the middle of the year, the brand’s electric car sales fell by 50%while the shareholders began to ask for more gasoline cars to recover sales.
Even Rimac, one of the pioneers of luxury and sports electric cars, is having a hard time selling its brilliant Rimac Nevera. For Mate Rimac, the company’s CEO, “Rich people want gasoline cars”.
Despite this uncertain outlook, no brand is considering stopping the production of electric cars. On the one hand, the 2035 date and the ban on petrol cars are still there, in principle. And on the other hand, in the world’s largest market, China, sales of electric cars continue to grow like wildfire (+13% in August 2024 (compared to August 2023).
Even in Europe, where the Electric car sales have fallen by 4% in August 2024 compared to the same month in 2023, the Sales have grown In some countries, such as the United Kingdom (+12%), Belgium, France or Portugal.
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Source: www.motorpasion.com
