Automakers around the world have begun to reduce investment in electric vehicles.

Tesla, Ford, Mercedes-Benz and other auto giants are adjusting their plans for the production of electric vehicles. There is a noticeable shift in the market towards reducing investment in green technologies, which, according to industry experts, is caused by a decrease in demand for this type of transport.

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As InsideEVs reports, according to a new report from research firm BloombergNEF (BNEF), the current situation could affect the number of electric vehicles produced by the end of the current decade. The 14 automakers that have set EV goals for 2030 are expected to produce 23.7 million EVs, down significantly from the original forecast of 27 million. “While each automaker sets goals individually, they can collectively transform the global auto industry if these goals are successfully implemented,” BNEF analysts said.

According to industry experts, automakers could not predict how the electric car market would develop. Although sales of conventionally powered vehicles began to decline in 2018, the clear inflection point that companies had hoped for has not materialized. Moreover, investments in various types of drives require a significant investment of time and resources, which creates significant risks for companies that do not have a clear vision of the future.

In 2024, six major automakers have revised their EV sales forecasts for the current decade. Specifically, Mercedes-Benz has reduced its target for the share of electric vehicles in global sales from 100% to 50% by 2030. Ford also lowered its EV sales target in Europe, which is likely to impact the company’s global goals as well. Volvo has abandoned its goal of selling exclusively electric cars, saying recently that at least 90% of its sales would also include hybrids.

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Volkswagen and Stellantis will also miss their 2030 targets and are likely to revise their plans soon, BNEF said. At the same time, not only long-term, but also short-term plans were under threat. General Motors recently abandoned its goal of producing one million electric vehicles in North America by 2025, and Toyota cut its 2026 sales forecast from 1.5 million to 1 million.

BNEF analyzed how automakers’ EV sales claims have evolved by 2025 and found that cumulative targets peaked at 17.6 million units (from 16 automakers) but now stand at 11.9 million (from 12 automakers). All these plans came at the beginning of the decade, when there was a more optimistic atmosphere in the industry, which also influenced the market capitalization. Now companies are seeking to demonstrate a more balanced approach, not least because Chinese automakers have begun to abandon Western brands in favor of their own models, thereby influencing global expectations.

However, it’s not all bad. Sales of electric cars continue to grow around the world, including the United States, and industry experts expect long-term growth in the segment. BNEF estimates U.S. sales of electric and hybrid vehicles will grow 20% this year. Optimistic news also comes from the South Korean brands Kia and Hyundai, which are showing steady growth and do not plan significant production cuts.

It is noted that despite the current difficulties, the electric vehicle market still has potential for growth. Leading players such as BYD and Tesla continue to aggressively develop their technologies, leaving less aggressive companies behind.