Carmakers' massive U-turn on EVs
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Multiple automotive companies are scaling back their plans to produce and sell electric vehicles as demand for performance EVs tapers.
Ferrari is the latest luxury manufacturer to pull the plug on their second all-electric model.
According to Reuters, the luxury car manufacturer has pushed back plans for a second all-electric model from a planned 2026 launch to a new 2028 date due to a lack of demand for high-performance luxury EVs.
According to sources close to Reuters, low market interest would also give Ferrari more time to further develop in-house technology for its second electric vehicle. However, soft demand remained the main reason for the delay.
Instead, Ferrari will continue to reveal its first electric vehicle in October 2025, following the launch of several hybrid models, including the 296 GTB/GTS in 2021 and the SF90 Stradale in 2019.
Ferrari has pushed back plans for its next EV.
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While details of the second electric Ferrari model have yet to be confirmed, Ferrari joins other European brands in delaying planned launches of their electric vehicles in recent times.
Ferrari's Italian competitor, Lamborghini, a subsidiary of Volkswagen, announced in December that it will launch its first electric model in 2029, rather than 2028. Additionally, Germany's Porsche has scaled back its plans for electric vehicles due to lower sales of its electric Macan SUV and Taycan models.
Audi has also announced it will postpone its plans to exclusively build electric cars from 2032, and instead opt to develop a new generation of combustion and hybrid vehicles to align with global market dynamics.
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The car maker planned to introduce its final new petrol-powered model line in 2026, with the end of the vehicle's lifespan in 2032 seeing Audi sell only battery electric vehicles from then onwards.
The original EV-only date was announced back in 2021, with the German carmaker insisting it would only build zero-emission vehicles for all global markets except China.
And in a recent update, company executives clarified that while electric cars remain a core part of Audi's strategy, the company will no longer limit itself to launching only electric models after 2026.
Photo of the Audi SQ8 e-tron
CEO Gernot Döllner said that the company is launching a completely new line-up of internal combustion engines (ICEs) and hybrid vehicles, allowing up to 10 years to see how the market develops.
'We have already decided to extend the production beyond the communicated end dates of the past,' he said.
2023 Audi Q8 e-tron
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Audi isn't alone with this change either. Volvo has extended ICE deadlines both globally and in Australia, while Mercedes-Benz and BMW are also shying away from an all-electric future anytime soon.
This decision comes amid broader turbulence in the EV sector.
Demand for electric cars has cooled in several markets due to high costs, gaps in charging infrastructure, and consumer hesitation.
Data from the Australian Automobile Association revealed just 17,914 EVs were sold in the first three months of 2025 or just over 6 per cent of all vehicle sales in the country.
Demand for EVs has cooled. Picture: NewsWire / Jeremy Piper
The AAA quarterly vehicle report showed the last time EV sales were at that level was in 2023 when 17,396 cars were sold during the same period.
The 2025 data also shows EVs have dropped market share when compared to the final three months of 2024 – 21,331 EVs were sold in the last quarter of 2024 to make up 7.42 per cent of the country's vehicle sales.
2025 Tesla Model Y, BYD Sealion 7 and Volkswagen ID. 4 Pro. Picture: Mark Bean
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That represents a drop of 1.12 per cent in market share quarter to quarter.
Additionally, China's rapid development of high-quality electric vehicles have posed a significant challenge to US and European car manufacturers in Australia.
Chinese EV brands, such as BYD and MG, have already made their mark in Australia, filling most of the top-selling positions after Tesla.
The key driver behind this is the aggressive pricing that is pushing Chinese EV makers to the forefront of consumers' minds.
2025 Tesla Model Y. Picture: Mark Bean
BYD is continuing to smash Tesla in Australia, with sales of Elon Musk's car company down 48.2 per cent compared to this time last year.
Australian sales data published by the EV Council shows Tesla sold 3897 vehicles last month, more than seven times the 500 cars it delivered in April.
It also just about doubles the number of cars sold by Tesla this year, to 6974.
However, the company is experiencing a gradual decline in sales due to slow performance in the early months of 2025, attributed to a shortage of Model Y stock.
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