These brands have realized that the arrival of the electric vehicle may not be as inevitable as they thought.
After initial optimism about battery-powered vehicles, some brands have realized that the arrival of electric vehicles will not be as inevitable as they thought, and there is already talk of a slowdown.
Slow down. This word sends chills when it refers to the economy, for example, because it means that it is growing less than expected. And this word is now in vogue in the automotive sector, in particular in some brands that realized the electric car wouldn’t be as inevitable as they thought.
Demand for electric vehicles was lower than expected. Many users point to the lack of charging infrastructure as one of the reasons for their reluctance to use electric vehicles, while some are also concerned about the high wear and tear of some models.
As a result, some manufacturers are beginning to reconsider their initial optimism about electric vehicles. For example, Ford has revised its expectations regarding F-150 LightningGeneral Motors has scaled back plans to produce electric pickup trucks.
Genesis, Hyundai’s luxury brand, has lost faith in its electric vehicle strategy, and even some Chinese manufacturers such as HiPhiwere forced to suspend production for six months due to lack of demand.
These facts show that the electric vehicle is in decline and it may have taken some brand executives by surprise. Although not everyone. Some Japanese women who were cautious at first can now boast that they are on the right track.
These brands have realized that the arrival of the electric vehicle may not be as inevitable as they thought.
Toyota has long expressed its skepticism about plans by governments and manufacturers to focus entirely on electric vehicles. Other companies such as Honda, Subaru, Nissan and Mazda have also taken positions similar to Toyota’s. It’s not that they are abandoning 100% electric vehicles, but their plans for the future are not solely related to this technology..
Precisely, ardent supporters of electricity questioned the position of the Japanese at that time and accused them of being unwilling to change. However, the report from Bloomberg suggests that the Japanese auto sector sensed that the electric vehicle market would eventually face a slowdown similar to the one we are seeing now.
“The customer decides the speed of electrification” This phrase was spoken by Stephen Ma, Chief Financial Officer of Nissan Motor, and is a powerful message in the form of a slap in the face to the global auto industry. “Electrification is not linear growth, but a straight line. It will go up and down. But in the long term it will grow.”
Japanese brands are not giving up on electric vehicles
Despite these claims, Nissan is not losing sight of its electrified future. Although the company is focused on what the consumer wants, continues to implement the electric strategy announced in 2021for which he launched a five-year plan worth more than 12 billion euros.
In turn, Honda Motor CFO Eiji Fujimura said that, despite anticipating a possible slowdown in the growth of the electric vehicle market, they will continue to produce their battery-powered models. Likewise, Subaru executive vice president Tomoaki Emori says they have already taken the potential slowdown into account when developing their electrification plan.
Toyota, for its part, remains steadfast and is recording record sales of its hybrid vehicles. In particular, in Spain this brand sold the most cars in 2023. However, CFO Yoichi Miyazaki claims that The company will continue to invest in electric vehicles as part of its strategy to offer a full range of PHEV, BEV and hydrogen models..
By 2025, the company plans to deliver about five million electric vehicles worldwide.
Mercedes will update internal combustion engines
A special case is Mercedes. The German company had planned for its entire lineup to be electric by 2030, but it is now looking at a very different perspective and has just announced that it will update its internal combustion engines, including hybrid variants.
The company’s latest forecasts suggest that sales of electrified vehicles, including hybrids and pure electric vehicles, will account for only half of total production within six years.
Reportedly ReutersMercedes CEO Ola Källenius said he wants customers and investors to know the company is committed to continuing to produce combustion engine cars beyond 2030. He insisted that plug-in hybrid cars “will be around” for several years..