A new EY report shows that global car buyers are increasingly shifting back toward combustion engine vehicles, driven by policy reversals, geopolitical tensions, and concerns over EV infrastructure and costs. Recent moves—such as the U.S. proposal to roll back fuel economy standards and the EU’s potential easing of its 2035 engine phase-out—reflect a slower-than-expected transition to electric vehicles. While Chinese consumers continue buying EVs, their priorities are shifting toward digital features rather than powertrain type.

According to EY, half of all global car buyers plan to purchase a new or used combustion engine vehicle within the next two years, a 13-point increase from 2024, while interest in battery-electric and hybrid models has dropped. Additionally, 36% of prospective EV buyers are delaying or reconsidering purchases due to geopolitical developments. EY notes that policymakers, particularly in Europe, are reassessing climate and mobility goals with greater focus on scientific analysis rather than ideology.