Policy Reversals Spark Combustion Engine Comeback

A report by EY reveals a global shift back to combustion engines, fueled by policy changes, trade wars, and rising skepticism about EV infrastructure. The report highlights a sharp increase in interest in gasoline-powered cars amidst geopolitical developments impacting the pace of the electric vehicle transition.

As global policy shifts emerge, car buyers worldwide are gravitating back to combustion engines, according to a report by EY. Influenced by trade wars and increasing criticism of EV infrastructure, this pivot underscores potential challenges for the electric vehicle industry.

Recently, U.S. President Donald Trump pushed for reduced fuel economy standards, potentially impacting the sale of gasoline-powered vehicles. Concurrently, the European Union anticipates releasing a less stringent version of its 2035 combustion engine phase-out plan, signaling slower EV adaptation.

Amid these changes, Western policymakers contend with protecting domestic markets from China's heavily subsidized EVs, whereas U.S. and European carmakers face China's gasoline-powered vehicle competition globally. Despite rising interest in combustion engines, advocates of electric transport continue to stress the need for a swift EV transition to limit CO2 emissions.