There is no shortage of examples. Ford, one of the pioneers of car electrification in Detroit, is withdrawing its plans to completely switch to e-cars in Europe by 2030. Instead, it focuses on hybridssuch as F-150 Lightning, the best-selling pickup truck in the US. Similarly General Motors, which was the first traditional automaker to go all-in on EVs, now plans to launch plug-in hybrids for consumers, alongside EVs and gas cars. Others like Hyundai Motor, Kia, Toyota Motor and potentially Volkswagenplan to offer different levels of electrification across their ranges.
Even the American EV leader, Tesla, which was to be responsible for 55% in 2023. EV sales in USAis preparing for a “possibly much lower” growth rate, its CEO said in late January Elon Musk.
What's behind the slowdown?
There are several reasons for changing the strategy. Firstly, EV demand is not growing as fast as expected. In 2023, EV sales accounted for only 7.6%. US market, far from the forecast 30-39 percent. by the end of the decade. Analysts from Cox Automotive lowered their forecasts, pointing to a “slowing in change” as early adopter demand was met.
Second, EV prices are still high, discouraging many consumers. Suffice it to say that in this situation, even Tesla lowers the prices of some models to increase sales. In addition, the rising costs of raw materials for production battery additional burden on EV profitability. This encourages manufacturers to look for savings, e.g. by simplifying vehicle construction. But creating cheaper and more efficient batteries is crucial for further EV development. Research lithium-ion batteriesii alternative battery technologies are being conducted around the world.
It cannot also be passed over in silence that EV charging infrastructure is still insufficient, making the use of these vehicles difficult in many regions. Although governments and companies are investing in expanding the network of charging stations, there is still much work to be done. According to BloombergNEFglobal investment in EV charging infrastructure amounted to $27 billion in 2023.
Focusing on balance
As a result, automakers are looking for a more sustainable approach. Instead of focusing solely on EVs, they offer a mix petrol and hybrid vehicles and electrical. Hybrids such as Toyota Prius Whether Hyundai Ioniq Hybrid, constitute a compromise between price, range and infrastructure availability. They allow consumers to make a gradual transition to electromobility without sacrificing comfort and convenience.
The change in strategy also means slower growth of EV market share. Instead of a sudden shift to EVs, we can expect a longer era of gasoline and hybrid models. Hybrids could dominate the market in the coming years, providing a bridge to an all-electric future. This still remains promising, but its shape will depend on many factors. It is the development of charging infrastructure, regulations on emissions and fuel efficiency, and consumer preferences that will determine the pace and scale of transport electrification.
What are the forecasts? Cox Automotive predicts U.S. EV sales will reach 30%. market by 2030, but the growth rate may be lower. Analyst Fiorani himself With AutoForecast Solutions claims that the growth of EV market share will certainly slow down in the coming years.
