Several high-end brands have delayed or altered electrification timelines.
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At least 12 global carmakers are revising their electric vehicle (EV) strategies amid sustained demand for combustion engine vehicles and reduced policy support in key markets, according to Financial Times.
Honda has withdrawn its plan to stop producing combustion engine cars by 2040 and expects losses of $16 billion over the next two years linked to changes in its EV strategy. Mercedes-Benz, Ford, Stellantis and Volvo Cars have also reduced their all-electric targets.
Among luxury manufacturers, Rolls-Royce has adjusted its plans, stating last week that it will continue producing petrol engine vehicles beyond 2030.
Luxury segment slows transition
Several high-end brands have delayed or altered electrification timelines. Bentley, Lotus, Audi and Porsche have scaled back plans to become fully or largely electric within the next decade. Many are extending the availability of plug-in hybrid models.Lamborghini, owned by Volkswagen, has dropped plans to launch its first fully electric model, the Lanzador, by 2030 and will instead introduce it as a plug-in hybrid.
Ferrari reduced its 2030 EV production target last year but continues development of its first electric model. The company said it aims to deliver the same “driving thrill” regardless of whether the vehicle is powered by petrol, hybrid systems or batteries.
Bentley, also owned by Volkswagen, said it would continue selling plug-in hybrids beyond 2035, moving away from its earlier EV-only target.
The transition to EVs has been slower in the luxury segment. Rolls-Royce launched its first fully electric vehicle, the Spectre, in 2023. Ferrari plans to begin taking orders for its all-electric Luce in May, while Bentley is expected to introduce its first electric model next year, two years later than initially planned.
“During the time since Rolls-Royce Spectre launched, the world has changed,” said Chris Brownridge, chief executive of Rolls-Royce Motor Cars, told Financial Times.
Policy changes affect EV momentum
Policy shifts in major markets have also affected EV adoption. Since Donald Trump took office, the US administration has ended federal tax credits for EV buyers, reduced support for charging infrastructure and weakened vehicle emission targets. The European Union has also diluted its emissions goals.
According to Financial Times calculations, changes to EV strategies — including cancelled launches and revised investment plans — have cost the global car industry at least $75 billion in the past year.
Carmakers are now balancing EV development with continued investment in hybrid and combustion engine vehicles as they respond to market demand and regulatory changes.
