The rapid push toward all-electric vehicles is hitting a speed bump. Despite aggressive timelines set just last year, major automakers are now re-evaluating their electric strategies, signaling that gasoline-powered cars won’t disappear from roads anytime soon. This shift isn’t a rejection of electric technology, but a pragmatic response to slowing EV demand and economic realities.
Demand Plateau and Production Adjustments
The initial surge in EV adoption has leveled off, forcing manufacturers to rethink ambitious all-electric plans. Porsche, for example, will continue producing internal combustion engine (ICE) versions of popular models like the Macan and Cayenne alongside their electric counterparts. Lamborghini is delaying its fully electric Lanzador in favor of a plug-in hybrid version, and Jaguar Land Rover has pushed back the release of their electric Range Rover and Jaguar Type 00.
This isn’t just about reluctance to change; it’s about market responsiveness. Mercedes-Benz, with its new multi-fuel platform for the CLA, demonstrates a strategic advantage by adapting production to consumer demand, ensuring the survival of smaller, traditionally gasoline-powered vehicles. BMW is following suit, committing to building both petrol and electric versions of its Neue Klasse models from 2026 onwards.
Mild Hybrids Fill the Gap
Mainstream automakers like Fiat (under Stellantis) are doubling down on mild-hybrid technology, integrating these engines into everything from compact city cars to larger SUVs. This approach offers a middle ground for consumers who aren’t yet ready to fully commit to electric but still want improved fuel efficiency. The appeal of affordable, readily available petrol power remains strong.
Policy and Economic Factors
Government policies are also playing a role in slowing the EV transition. The UK government’s recent announcement of a three-pence per mile road tax for EVs from 2028 diminishes financial incentives to switch. Even the EU has backtracked on its planned 2035 ban on new petrol and diesel car sales, indicating broader hesitation.
“The convenience (and price) of petrol power still resonates with the car-buying public.”
These decisions aren’t about halting the transition to net-zero emissions entirely. Instead, they highlight the need for realistic, consumer-friendly options. As long as there’s demand for affordable, fuel-appropriate vehicles, automakers will continue to produce them. Hybrid models, like those potentially coming from Polestar, could be key to bridging the gap between traditional combustion engines and full electrification.
The bottom line: The death of the petrol car has been greatly exaggerated. While electric vehicles will continue to evolve, the internal combustion engine isn’t going extinct—it’s adapting. The future of automotive propulsion is likely to be more diverse than previously anticipated.
