Tag Archives: EVs

Electric Vehicle Plans Stalled by Market Hesitation

At the start of the 2020s, the automotive industry boldly charted a course toward an all-electric future, with many leading manufacturers pledging to phase out internal combustion engine (ICE) vehicles by 2030. However, the tide appears to be turning. Major carmakers like Mercedes-Benz, Audi, Volkswagen, and BMW are now tempering their ambitions, citing lagging consumer demand and market variability as key reasons for their recalibrated strategies.

Mercedes-Benz: A Strategic Pivot

Mercedes-Benz is among the first to publicly adjust its course. While the German automaker continues to invest in electric models like the GLC and CLA—both of which are expected to bolster EV sales—the brand is not ready to abandon traditional engines. Gasoline and diesel variants will remain available for at least another decade.

This decision is partially a response to underwhelming global sales of its EQS and EQE electric models, which failed to meet expectations. The new GLC will be built on the modular MB.EA platform and offered exclusively as an electric vehicle, while the CLA will take a dual-track approach, available as both an EV with cutting-edge 800-volt technology and a mild hybrid model. This reflects a more pragmatic and flexible strategy, in tune with real-world market demand.

BMW: Electric Skepticism Meets Strategic Hedging

BMW, which has long favored a multi-platform approach, is doubling down on its strategy. CEO Oliver Zipse has openly called electric vehicles a “dead end,” suggesting that the market may not fully transition as quickly as many had hoped. The upcoming iX3, built with 800-volt architecture, will serve as the electric sibling to the conventional X3, while the new i3—set to resemble the classic 3 Series—will integrate extended-range technology, with a gasoline engine acting as a generator.

This diversified approach allows BMW to hedge against the uncertainties of global EV adoption, balancing innovation with familiarity.

Audi and Volkswagen: Backpedaling on Bold Promises

Three years ago, Audi vowed to launch its last ICE models by 2025 and become fully electric in new vehicle launches by 2026. But the brand is now reconsidering this timeline. CEO Gernot Döllner recently told Autocar that Audi may continue producing petrol-powered cars until at least 2035, depending on customer demand.

Volkswagen echoes this caution. Although the company plans to produce an all-electric Golf, it also anticipates maintaining production of its combustion engine counterpart for at least another decade. This marks a significant shift from its earlier commitments to rapid electrification.

A Global Patchwork of Progress

Automakers are increasingly recognizing that global markets are moving toward electromobility at different paces. While regions like Europe and China are more EV-focused, others remain reliant on traditional engines. This disparity is prompting companies to create “safety nets” by retaining ICE models longer than originally intended.

Toyota stands out as a leader in this flexible approach. As the world’s largest carmaker, it has long pursued a diversified portfolio—including hybrids, hydrogen fuel cells, and battery-electric vehicles—offering a model of balanced innovation that other manufacturers are now beginning to emulate.

Uncertain Policy Future

The EU’s current legislation mandates a phase-out of new ICE vehicles by 2035, effectively banning them from the market. Yet, with major automakers recalibrating their strategies, questions are emerging about whether this regulation will hold firm—or be revised to reflect market realities.

The electric dream is far from dead, but it is evolving. Instead of a one-size-fits-all approach, carmakers are now embracing diversity in their powertrains, striving to align with consumer preferences, technological advancements, and geopolitical factors. As the 2030s approach, the road to a fully electric future appears more complex—and more flexible—than previously imagined.

Source: Autocar

Smart Hints at Roadster Revival Amid EV Expansion

Smart, the German electric carmaker known for its compact city vehicles, could be preparing an unexpected twist in its future product lineup. According to recent statements and industry speculation, the brand is exploring the possibility of reviving the beloved Smart Roadster as a fully electric convertible. Though nothing is officially confirmed, the timing may align with the upcoming launch of a new-generation Smart ForTwo.

Originally produced between 2002 and 2005, the Smart Roadster gained a cult following thanks to its quirky design and agile handling. The sporty two-seater was powered by a small 0.7-liter three-cylinder engine, with power outputs ranging from 61 to 101 horsepower, depending on the variant. A coupe version and a high-performance Brabus model added further flair to the short-lived series.

Now, as Smart transitions fully into the electric era, the idea of bringing back the Roadster with a zero-emissions powertrain has begun to circulate. The modernized Roadster would target rivals like the Mazda MX-5 — a popular benchmark in the small convertible segment — but with a unique electric twist.

Jason Albutt, head of Smart’s UK division, shared his enthusiasm in an interview with Auto Express, recalling his personal experience with the original model: “We had one in the family and it was a lot of fun. For a country that gets more rain than any other European market, we’re big fans of coupes and convertibles. So yes, I see the potential for a car like that in the UK.”

However, even Albutt remains cautious. While he acknowledges the appeal of a compact electric roadster, he also expressed uncertainty about how it would be received in a market traditionally drawn to the visceral experience of internal combustion engines.

“I think a lot of people who drive these cars have always been passionate about traditional cars. Part of the joy of the open top is hearing the sound of the engine,” he said. “There may be a new audience that might be interested in a different way. I’m not sure what kind of buyers they are. It’s too early to say, but we’ll see.”

Indeed, the potential revival of the Smart Roadster would mark a bold move for a brand that has rebranded itself as a premium EV specialist in partnership with Chinese giant Geely. With the new ForTwo expected soon, the company has an opportunity to expand its portfolio — and potentially reignite passion among enthusiasts who long for compact, driver-focused electric cars.

For now, there’s no official green light. But in the ever-evolving EV landscape, Smart’s flirtation with the Roadster’s return is a story worth watching. As the old saying goes: where there’s smoke, there’s fire.

Source: Auto Express

Kia Walks a Tightrope in Europe’s Shifting Auto Market

Selling cars in Europe today is no longer just about satisfying consumer demand—it’s about navigating a complex web of regulatory requirements, economic pressures, and shifting market preferences. And no automaker illustrates this balancing act better than Kia.

Despite the European Union’s aggressive push toward electrification, combustion-engine vehicles still dominate the roads. According to data from the European Automobile Manufacturers’ Association (ACEA), electric vehicles (EVs) accounted for just 15.3% of new car sales in the EU during the first four months of the year. Yet the regulatory noose is tightening: the EU is pressing ahead with stricter CO₂ emissions limits and has mandated that all new cars sold from 2035 onward must be electric.

Caught in this tug-of-war is Kia, which is carefully trying to strike the right balance. “If we rely too much on combustion cars, we risk not reaching the CO₂ targets and having to pay fines. If we push EV sales too much, we end up denting our profit margins,” said Carlos Lahoz, Vice President of Sales for Kia Europe, in an interview with Automotive News Europe.

The dilemma isn’t unique to Kia. Across the continent, automakers are grappling with a similar paradox. Traditional internal combustion engine (ICE) vehicles are still more profitable and in higher demand, but EVs are essential to meet emissions targets and avoid hefty fines. Volkswagen and Renault have both voiced fears that failing to comply with new EU emissions standards could cost them billions of euros as early as 2025.

The EU has somewhat eased the pressure by allowing carmakers to average their emissions over the 2025–2027 period rather than hitting targets in 2025 alone. Still, the road ahead is steep. Stellantis’ chairman recently revealed that over a quarter of engineers’ working hours are now consumed by regulatory compliance tasks, much of it related to emissions standards.

At the heart of the problem is a lack of profitability in the EV sector. Lahoz acknowledged that battery costs remain a major hurdle, preventing electric vehicles from achieving cost parity with their gas-powered counterparts. As a result, Kia must use profits from ICE models to fund the transition to electric—a strategy echoed by many automakers across Europe.

Nonetheless, Kia is proving that strategic flexibility can pay off. The South Korean brand is enjoying a strong year in Europe, capturing a 4.1% market share in the EU, EFTA, and UK combined during the first four months of 2025. That puts it ahead of several well-established rivals, including Ford (3.4%), Opel/Vauxhall (2.9%), Citroën (2.8%), Fiat (2.3%), and SEAT (1.7%). Impressively, it even surpassed its larger affiliate Hyundai (3.9%).

For now, Kia’s strategy hinges on maintaining a careful equilibrium: continuing to sell ICE vehicles to support short-term profitability, while steadily growing its EV lineup to ensure long-term survival in an increasingly green automotive landscape. Whether that tightrope walk can remain sustainable as regulations tighten and competition from low-cost EV manufacturers, particularly from China, intensifies remains to be seen.

But one thing is clear—Europe’s automotive future is electric, and Kia, like the rest of the industry, must evolve without stumbling.

Source: Automotive News Europe