Carmakers slow EV plans as demand falls

Japan’s Toyota Motor has reportedly slashed its electric vehicle production plans for 2026 by a third, the latest automaker to roll back EV plans amid slowing demand.

The global sales of EVs — either fully electric or plug-in hybrid — rose 20% in the first half of 2024, slower than expected, data from market research firm Rho Motion shows. Europe experienced only 1% growth in the same period.

Sales of hybrid electric cars, seen as a more affordable compromise between all-combustion and all-electric, have meanwhile increased.

The following carmakers have recently tempered their expectations (in chronological order starting with the most recent):

Toyota

The world’s biggest automaker plans to build 1-million EVs in 2026, compared with its earlier announced sales target of 1.5-million, the Nikkei business daily reported on September 6.

Toyota said there was no change to its intention to produce 1.5-million EVs per year by 2026 and 3.5-million by 2030. It said, however, that the figures were not targets but benchmarks for shareholders.

Volvo Cars

The Swedish automaker scrapped on September 4 its target of going all electric by 2030 and said it expected to still be offering some hybrid models at that time.

It aims for 90-100% of cars sold by 2030 to be pure EVs or plug-in hybrids, while up to 10% would be so-called mild hybrids.

Volkswagen

Europe’s biggest automaker by sales hasn’t changed its 2030 targets for EVs to make up 70% of sales in Europe and 50% in the US and China, despite repeatedly warning about slowing demand.

However, its group technology chief said in August VW’s battery factory building plans were not set in stone and depended on the EV demand.

Ford

Ford in August lowered the share of planned annual capital spending dedicated to pure EVs to about 30% from 40%, given its increasing emphasis on hybrids, and said it was killing a planned electric SUV and pushing back a new electric version of its best-selling bakkie.

Porsche

The German premium carmaker in July watered its EV ambitions, saying it could only hit its previously communicated aim of 80% all-electric sales by 2030 if demand and developments in the EV sector warranted it.

Renault

In early 2022, CEO Luca De Meo guided for all the Renault brand’s sales to be fully electric by 2030, but two years later the target was changed when the brand CEO Fabrice Cambolive said in an interview with ANE that Renault was seeing a dual strategy with both EVs and combustion-engine cars for the next 10 years, thus beyond 2030.

In July, De Meo also expressed doubts over the timeline for fully shifting its European production to EVs.

General Motors

In June, GM cut its EV production forecast for 2024 and in July it declined to reiterate its forecast to produce 1-million EVs in North America by end-2025.

Mercedes-Benz

The German luxury carmaker said in February that sales of EVs, including hybrids, would account for up to 50% of the total by 2030, five years later than its forecast in 2021.

It has also slowed its battery cell capacity plans as the EV demand did not pick up.

Bentley Motors

Bentley had aimed for an all-EV line-up by 2030, but in March then-CEO Adrian Hallmark said hybrids are likely still to be on sale after that.

Aston Martin

The British automaker in February delayed the launch of its first EV due to low demand.

Reuters