Western car manufacturers are making a 'profound strategic mistake' by pulling back from electric vehicles just as Chinese rivals gain ground, according to industry experts. Companies like Ford, General Motors, and Stellantis are abandoning EV investments and refocusing on combustion engines despite soaring oil prices and growing competition from brands like BYD and Leapmotor.

This retreat mirrors the 1980s when Detroit's carmakers were upended by Japanese competitors offering fuel-efficient alternatives. Today, BYD has overtaken Tesla as the world's biggest EV seller, while Chinese manufacturers are rapidly seizing market share across Europe. In the US, the pullback has been even more severe, with Ford taking a $19.5 billion hit and scrapping future electric models.

Industry veterans warn that hesitation now will hand rivals a structural advantage that becomes harder to reverse. Former Aston Martin CEO Andy Palmer notes that Chinese carmakers have built real capability in batteries and software while scaling quickly. With Europe's 2035 emissions targets weakened and politicians sending mixed signals, manufacturers are caught between short-term profits from petrol cars and the need to compete in the EV market. As one expert bluntly stated: 'That is a stupid view if you still want to be in the car market in 2035.'