- Global car buyers are shifting back to combustion engines as policy rollbacks, geopolitical tensions and EV infrastructure concerns weaken confidence in electrification.
A new global study from EY indicates a significant shift in consumer behaviour, with more car buyers leaning toward combustion engine vehicles rather than electric or hybrid models. The trend is emerging at a time when governments are reassessing earlier climate commitments, and when buyers across major markets are increasingly unsure about the cost, practicality and long-term support for EV ownership.
Policy Changes Reshape Buyer Sentiment
A series of policy reversals across Western markets appears to be influencing purchasing decisions. In the United States, President Donald Trump has proposed sharply reducing the fuel-economy targets set under the previous administration. If implemented, the move would ease compliance pressure on automakers and could make petrol-powered models more attractive from a pricing perspective.
Europe is also recalibrating its EV strategy. The European Union is expected to present a diluted version of the planned 2035 ban on new combustion engine cars, signalling concerns about affordability, job losses and supply-chain readiness. Such adjustments suggest policymakers are acknowledging the slower-than-expected pace of the global transition to electric mobility.
EY’s Global Aerospace, Defence and Mobility Practice Leader, Constantin M. Gall, said the policy shifts reflect a broader realisation that the EV transition is moving more gradually than anticipated. He noted that, even in China, where EV sales continue to rise rapidly, buyers are placing greater emphasis on technology integration, connectivity and digital features rather than drivetrain type. “We had discussions with the European Union, as they are doing the due diligence now for their reassessment of the Green Deal… they are now looking more at scientific facts, less at convictions,” said Gall.
Also Read : Carmakers mount last-ditch push to soften EU’s 2035 petrol ban
What’s Driving The Hesitation Around EVs
Concerns over charging infrastructure, vehicle prices and geopolitical uncertainty are weighing on buyer confidence. In many regions, charging networks remain patchy or inconsistent, leaving buyers unsure about long-distance usability. Meanwhile, EV prices remain higher than comparable combustion models, and government incentives are tightening in several markets.
Geopolitics is also shaping sentiment. Trade tensions, particularly between Western countries and China, have led to tariffs aimed at curbing the influx of subsidised Chinese EVs. While these measures are intended to protect domestic manufacturers, they have also fuelled uncertainty about future pricing and availability. At the same time, Chinese carmakers are expanding exports of competitively priced petrol and diesel vehicles, further intensifying competition for global brands.
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Why This Trend Matters?
The shift back to combustion engines poses challenges for global climate targets, especially as road transport remains one of the largest contributors to emissions. Carmakers that have invested heavily in EV development may need to recalibrate product strategies if demand continues to soften. Environmental groups warn that delaying the transition risks locking in higher emissions for longer, making climate goals harder to meet.
For automakers, the changing landscape could mean maintaining parallel development paths for longer, continuing to update combustion models while also advancing electric platforms. This dual track raises costs and complicates long-term planning.
Key Findings From the EY Study
- 50 per cent of car buyers globally expect their next vehicle, new or used, to have a combustion engine, marking a 13-percentage-point increase from 2024.
- Preference for battery-electric vehicles has fallen to 14 per cent, representing a 10-point decline year-on-year.
- Interest in hybrid models sits at 16 per cent, down 5 points.
- Among potential EV buyers, 36 per cent are now reconsidering or postponing their purchase due to geopolitical developments.
A Pivotal Moment for Global Mobility
The findings paint a picture of an automotive sector navigating shifting policies, economic pressures and evolving consumer expectations. While electric vehicles remain central to long-term sustainability efforts, the immediate outlook shows a more complex and uneven transition than initially envisioned, with combustion engines regaining ground as buyers weigh affordability, infrastructure readiness and global political tensions.
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First Published Date: 09 Dec 2025, 08:20 am IST
