Western carmakers are pulling back from electric vehicles just as the global market accelerates — a move industry veterans warn could repeat one of the automotive sector’s most costly strategic mistakes.

Across Europe and the US, manufacturers are slashing electric investment and returning to petrol and hybrid models. But critics say the retreat risks ceding the next era of the car industry to fast-rising Chinese competitors.

Echoes of Detroit’s 1980s Shock

The warning is not theoretical.

In the 1980s, American giants such as Ford Motor Company and General Motors were blindsided by smaller, fuel-efficient Japanese cars after oil prices surged. The result was a collapse in sales and hundreds of thousands of lost jobs across the US automotive heartland.

Former Aston Martin chief Andy Palmer says the same strategic error is unfolding again. Instead of doubling down on electric technology, Western manufacturers are slowing investment just as the market begins to shift.

China Accelerates While Europe Hesitates

Chinese brands are moving quickly into the gap.

Companies such as BYD and Leapmotor are exporting increasingly sophisticated electric cars across Europe at lower prices. BYD has already overtaken Tesla as the world’s largest EV seller.

Western rivals including Volkswagen Group, Stellantis and Renault still dominate European roads — but their lead is shrinking as Chinese firms scale production and improve battery technology.

Billions Written Off as Profits Lag

The financial strain behind the retreat is stark.

Stellantis recently wiped €22bn from the value of its EV investments, while Volkswagen has taken similar write-downs. In the US, Ford has absorbed roughly $19.5bn in losses and scrapped several electric projects.

Manufacturers argue weak consumer demand and patchy charging infrastructure justify the slowdown. Yet analysts warn the pause risks leaving Western companies technologically behind.

Politics Adds to the Uncertainty

Government policy is adding further confusion.

The European Commission recently softened its planned 2035 ban on new petrol and diesel cars, while the administration of Donald Trump has dismantled US electric vehicle subsidies and emissions rules.

Industry executives say the mixed signals make long-term investment harder. Critics counter that carmakers themselves lobbied for the policy retreat.

The Clock Is Ticking

Meanwhile Chinese manufacturers continue to surge ahead.

BYD recently unveiled battery technology promising 600 miles of range, with ultra-fast charging capable of adding hundreds of miles in minutes. At the same time, EV demand is surging in emerging markets including India, Brazil and Mexico — territories once dominated by Western brands.

For some analysts, the strategic choice is stark. If European and American manufacturers hesitate now, the next generation of global car buyers may simply look east.

‘It’s stupid’: Why western carmakers’ retreat from electric risks dooming them to irrelevance

Chinese might be happy with a disposable car that lasts 5-8 years then goes into landfill. But westerners(wokies excluded) know better. We currently have 3 vehicles one 65 years old,one 40 years old and our new one is only 28 years old. All drive great. God bless the ICE, long lasting reliable vehicles are much better for the environment than disposable EV garbage.

The future is fuel efficient and reliable ICE or hybrids that are built to last. Milk floats are a fad for posers and the woke and are environmental disasters.

the problem is not the car makers its the stupid Net Zero Government woke rubbish ,, most people juts dont want or can afford evs so sales are low .. And many people who did buy evs are regreting that mistake and going back to ICE

15 minutes ago, SunnyinBangrak said:

Chinese might be happy with a disposable car that lasts 5-8 years then goes into landfill. But westerners(wokies excluded) know better. We currently have 3 vehicles one 65 years old,one 40 years old and our new one is only 28 years old. All drive great. God bless the ICE, long lasting reliable vehicles are much better for the environment than disposable EV garbage.

The future is fuel efficient and reliable ICE or hybrids that are built to last. Milk floats are a fad for posers and the woke and are environmental disasters.

Ignorant posting. I know its an ignorant post because you have to fall back on a political insult to describe a <deleted> car preference.

The most fuel efficient motors use wet timing belts. You will barely get 45k miles out of these because the <deleted> rubber belt dissolves in the oil. When the rubber dissolves, it creates a sludge. The sludge blocks the oil pump strainer, <deleted> up the engine. Wet belt change; $3000. Add to that a transmission that barely last 50k kms (eg <deleted>ty Ford Powershift), everything coded to the car (so now to replace a headlamp bulb, its no longer a $5 bulb, but a $2000 unit, another example of a legacy car maker literally <deleted> you up the arse, and you saying thankyou.

2026 ICE cars will barely make 10 years. They'll get scrapped because repairs become uneconomic. Presuming you can get the parts, because thats the new trend among your dino car makers; limited parts support.

And don't tell your 28 year old heap is an efficient car. No, its a piece of <deleted> that was only supposed to last 15 years when built in the mid-90s

Hybrids ain't reliable. Thats another lie that you pensioner muppets have swallowed hook line and sinker, paying more for a car with less room and <deleted>ty handling to boot.

I'm not sure what the outcome will be with cars, but Chinese cars are not <deleted>, unless you pay <deleted>ty car prices. In which case they will be as <deleted>ty as a <deleted>ty cheap petrol car for the same money.

Westerners? Speak for your self. Don't presume what the rest of us thng. And don;'t dare try that ignorant "Wokie" crap, it displays an argument devoid of substance.

You stick to your 4th hand old cars. There will be still plenty around by the time you peg it in the next 10-15 years. But quit with the ignorant, intolerant insults to describe people who don't agree with your <deleted> choices in car. Justify your choice in car without the Pavlovian instinct to hurl insults.

I drive a V8 Jag and a race spec sports car by the way. None of that E10 <deleted> in them.

4 minutes ago, Roadsternut said:

Ignorant posting. I know its an ignorant post because you have to fall back on a political insult to describe a <deleted> car preference.

The most fuel efficient motors use wet timing belts. You will barely get 45k miles out of these because the <deleted> rubber belt dissolves in the oil. When the rubber dissolves, it creates a sludge. The sludge blocks the oil pump strainer, <deleted> up the engine. Wet belt change; $3000. Add to that a transmission that barely last 50k kms (eg <deleted>ty Ford Powershift), everything coded to the car (so now to replace a headlamp bulb, its no longer a $5 bulb, but a $2000 unit, another example of a legacy car maker literally <deleted> you up the arse, and you saying thankyou.

2026 ICE cars will barely make 10 years. They'll get scrapped because repairs become uneconomic. Presuming you can get the parts, because thats the new trend among your dino car makers; limited parts support.

And don't tell your 28 year old heap is an efficient car. No, its a piece of <deleted> that was only supposed to last 15 years when built in the mid-90s

Hybrids ain't reliable. Thats another lie that you pensioner muppets have swallowed hook line and sinker, paying more for a car with less room and <deleted>ty handling to boot.

I'm not sure what the outcome will be with cars, but Chinese cars are not <deleted>, unless you pay <deleted>ty car prices. In which case they will be as <deleted>ty as a <deleted>ty cheap petrol car for the same money.

Westerners? Speak for your self. Don't presume what the rest of us thng. And don;'t dare try that ignorant "Wokie" crap, it displays an argument devoid of substance.

You stick to your 4th hand old cars. There will be still plenty around by the time you peg it in the next 10-15 years. But quit with the ignorant, intolerant insults to describe people who don't agree with your <deleted> choices in car. Justify your choice in car without the Pavlovian instinct to hurl insults.

I drive a V8 Jag and a race spec sports car by the way. None of that E10 <deleted> in them.

Agree with much of your post - apart from the personal insults and tantrums. Planned obselescence is disgusting, should be illegal.

I go to lots of vehicle auctions. Often older ev's are up for grabs. Last week were 2 i think 2016 Nissan evs, looked mint condition didnt even make the $350 reserve. 25 year old ICEs all banged up were making $1000+++ says it all really

The Chinese are flooding ride share markets in citiess like Baku, Tblisi, Yerevan, TTasshkent etc, via Apps like Yandex and Bolt, where drivers can buy or lease the vehicles heavily discounted. Electric cars are wonderful in small size cities as ride share cars, especially where electric is cheap

9 hours ago, Roadsternut said:

You stick to your 4th hand old cars. There will be still plenty around by the time you peg it in the next 10-15 years. But quit with the ignorant, intolerant insults to describe people who don't agree with your <deleted> choices in car. Justify your choice in car without the Pavlovian instinct to hurl insults.

Excellent suggestion, no chance of it happening.

9 hours ago, SunnyinBangrak said:

Agree with much of your post - apart from the personal insults and tantrums. Planned obselescence is disgusting, should be illegal.

Right, insulting everyone but complaining when someone criticises you posting insults.

9 hours ago, SunnyinBangrak said:

Agree with much of your post - apart from the personal insults and tantrums. Planned obselescence is disgusting, should be illegal.

I go to lots of vehicle auctions. Often older ev's are up for grabs. Last week were 2 i think 2016 Nissan evs, looked mint condition didnt even make the $350 reserve. 25 year old ICEs all banged up were making $1000+++ says it all really

Apples & oranges comparison. As new tech makes older EV undesirable, as perform poorly compared to new. ICEV remain the same, or better and older ones have desirable features or styling.

There's still hope for North America. How it should have been done in the first place, but the greedy American car manufacturers had to keep the dual power train model so they could suck all that yearly maintenance costs from the dumb consumers. Kind of like a diesel electric train engine. Only electric driving the wheels. Gas motor to charge the batteries and supplement electricity to the wheels when needed.

Nissan’s new hybrid is a U.S.-first that mixes EV driving with a gas engine

https://www.cnbc.com/2026/03/21/nissan-series-hybrid-rogue-suv.html

The average US gas price has climbed to $3.90 a gallon, the highest in nearly three years. Analysts say the jump, driven by surging oil markets and the closure of the Strait of Hormuz, has pushed many motorists to reconsider vehicles that don’t rely on petrol.

Searches for electric models have jumped sharply in the weeks since the conflict escalated.

EV Curiosity Spikes Overnight

Data from automotive platform CarEdge shows online searches for electric vehicles rising about 20% since the conflict began.

Industry analysts say the spike happened almost immediately. Buyers began researching alternatives within 48 hours of the first strikes.

“It’s directly connected to the news,” analysts say, noting that sustained high fuel costs could push interest even higher.

Used EVs Become the Entry Point

For many Americans, the gateway to electric driving is the second-hand market.

Affordable models such as the Tesla Model 3, Chevrolet Equinox EV and Nissan Leaf are increasingly appearing below the $25,000 mark. Analysts say that price point makes EV ownership feasible for households hit hardest by rising fuel bills.

Hybrids are also gaining traction, offering drivers a hedge against petrol volatility without full reliance on charging networks.

Policy Battles Complicate the Shift

The surge in interest comes amid political headwinds.

The administration of Donald Trump has rolled back several emissions rules and challenged electric-vehicle mandates introduced by California. The move has prompted carmakers to prioritise petrol-powered SUVs and pick-ups, still the most profitable vehicles on US roads.

For now, EVs remain a small slice of the American market — accounting for less than 8% of new car sales.

Global Momentum Leaves the US Behind

Elsewhere, the shift is accelerating fast.

Electric vehicles now make up about one in five new car sales worldwide, with countries like Norway nearly eliminating new petrol-car purchases.

For American drivers staring at record fuel prices, the question is no longer whether EVs are the future — but how soon they become unavoidable.

US interest in electric vehicles surges as gas prices jump amid Iran war