The popularity of electric vehicles is declining worldwide: what is the reason for this?

The electric vehicle market is experiencing a cooling-off period after several years of rapid growth. Buyers around the world are increasingly questioning the wisdom of switching to electric transport and are returning to familiar solutions. In this article, we examine the key reasons for the decline in interest in electric vehicles, the impact of politics and infrastructure, and the response of car manufacturers to the new market sentiment. Find out why the global automotive trend is changing direction and what this means for the future of the auto industry

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Just a few years ago, electric cars were considered the undisputed future of the automotive market. However, in 2025, global trends began to change: more and more buyers are once again turning their attention to cars with internal combustion engines (ICE). According to a report by the international consulting network EY, about 50% of consumers plan to purchase a new or used car with an ICE within the next two years. This is 13 percentage points more than in 2024.

Against this backdrop, interest in electric vehicles is waning noticeably. The share of buyers who prefer fully electric vehicles has fallen to 14%, which is 10 points less than last year. The appeal of hybrids is also declining, down to 16%, a drop of 5 points over the year.

Why buyers are reconsidering their choice in favour of electric vehicles

The key reason is growing uncertainty. More than half of potential electric vehicle buyers say they are not changing their plans for now, but 36% are already postponing or reconsidering their purchase. Geopolitical factors, economic instability and changes in government policy in various countries play a significant role here.

Consumers are increasingly faced with the reality of the abolition or reduction of tax breaks for electric vehicles, rising prices for new models, and the uneven development of charging station infrastructure. In many regions, the availability of charging stations remains a critical issue, especially outside major cities and motorways.

Another deterrent remains concerns about driving range. Despite technological advances, fears of ‘not making it to the charging station’ continue to influence the choice in favour of internal combustion engines, especially among drivers who regularly make long journeys.

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Regional differences in the trend

A resurgence of interest in internal combustion engine vehicles is being observed in virtually all regions of the world. In North and South America, the share of buyers planning to purchase an ICE vehicle has increased by 12 percentage points. In Europe, the increase was 11 points, and in the Asia-Pacific region, about 10 points. At the same time, the intention to purchase an electric vehicle without an internal combustion engine is declining.

Experts note that changes in environmental and tax policy have a significant impact. In particular, the abolition of tax breaks for electric vehicles in the United States and the revision of emission targets in a number of countries make the purchase of electric transport less profitable for the mass consumer.

How car manufacturers are responding

Car manufacturers are also adapting to the new market realities. Many manufacturers are revising their strategies, refocusing on models with internal combustion engines and hybrid solutions. Electric vehicle development programmes are being adjusted: investments are being cut, launch dates for new models are being postponed, and internal combustion engine lines are getting a ‘second wind’.

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Reminder! The Ukrainian market for new cars is showing rapid growth in demand in the private and corporate segments. Find out which models were the most popular among Ukrainians and companies in November 2025 and what trends are shaping the car market.

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