More drivers around the world are shifting back to gas-powered cars as efforts to roll back tighter fuel standards in key global markets gain momentum.
The details: A new consumer survey by the insights company EY reveals that half of global car buyers plan to choose internal combustion engines, a 13-point jump as demand for electric vehicles softens.
50% of global car buyers intend to purchase an internal combustion engine (ICE) vehicle in the next 24 months, an increase of 13 points from 2024.
Battery electric vehicle (BEV) preference has fallen to 14%, a drop of 10 percentage points, and hybrid preference has declined to 16%, down five percentage points.
51% of prospective EV buyers say their plans remain unchanged, but 36% are reconsidering or delaying purchases due to geopolitical developments.
Regionally, the percentage of consumers who indicated that they want to buy an ICE vehicle rose by 12 points in the Americas, 11 points in Europe, and 10 points in the Asia-Pacific (APAC), while BEV intent fell across all major markets—with range anxiety being the top consumer deterrent for purchasing an EV.
Why it matters: Stores that match ICE, hybrid, and BEV offerings to local price sensitivity, infrastructure, and policy, will be better positioned to keep turns and margins healthy as shopper interest shifts back toward traditional powertrains.
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Between the lines: EY’s report comes amid mounting industry support for ICE vehicles across the globe.
President Trump announced last week that he will gut tighter U.S. emission standards that would have led to an expected fleetwide average of about 50.4 miles per gallon in 2031.
Trump’s move drew immediate support from Detroit automakers Ford, Stellantis, and General Motors, who have been raising concerns for months about the challenges to meet the standards.
Automakers in Europe are pushing the European Commission to ease its emissions standards on new vehicles—with the EU now indicating that it will fast-track its planned review of a 2035 internal combustion ban.
What they’re saying: “Consumers are weighing the realities of policy shifts, cost pressures and uneven charging infrastructure,” said Constantin M. Gall, EY Global Aerospace, Defense and Mobility Leader, per a press statement. “The long-term trend appears to be a shift away from a purely electric (‘E-only’) approach toward a more diversified future for vehicle powertrains, with different vehicle technologies serving different customer needs.”
Bottom line: A mixed powertrain future is here to stay. And manufacturers are doubling down on flexible inventory planning and clear side-by-side ICE/EV value stories to capture demand, whatever direction it moves.
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