At least 12 global carmakers are scaling back electric vehicle plans amid stubborn demand for combustion engines and policy rollbacks. Honda abandoned its 2040 combustion engine phase-out and forecast $16bn in losses over two years from EV strategy overhaul. Mercedes-Benz, Ford, Stellantis, and Volvo have also reduced their all-electric targets as market realities shift.

Luxury brands lead the retreat, with Rolls-Royce continuing petrol vehicles beyond 2030. Lamborghini replaced its planned fully electric Lanzador with a plug-in hybrid, citing customer rejection of silent engines. Ferrari halved its 2030 EV target but maintains its first electric model launch, promising the same "driving thrill" regardless of powertrain.

The industry-wide pivot follows regulatory changes in the US and EU, with both regions weakening emission standards and EV incentives. Financial Times calculations show these strategy reversals have cost the global car industry at least $75bn in the past year, with luxury brands extending plug-in hybrid availability while maintaining traditional combustion engine options alongside EV developments.