Electric Car Sales Slowdown: Major Carmakers Rethink EV Ambitions
The electric vehicle (EV) revolution appears to be hitting a speed bump in 2025. Global auto giants General Motors, Porsche, and Honda are all dialing back their ambitious EV targets, citing sluggish consumer adoption and growing regulatory tensions.
General Motors (GM) is the latest manufacturer to reconsider its electrification roadmap. According to The Wall Street Journal, GM has urged the federal government to challenge California’s right to set independent emissions standards—a move that complicates the company’s nationwide strategy. California aims to phase out internal combustion vehicles by 2035, but federal incentives for EVs have been reduced, placing automakers in the crosshairs of a state-vs-federal policy conflict.
An internal GM memo, seen by WSJ, warned employees: “Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability.”
The stakes are high, especially with 11 more U.S. states planning to follow California’s lead. Yet even in California—one of the most EV-friendly markets globally—electric cars only account for around 20% of new car sales.
Porsche also voiced concern during its recent Annual General Meeting. CEO Oliver Blume admitted that the industry faces a “fierce storm” as governments push for faster EV rollouts, while customer demand lags behind. Still, the company remains committed to its EV future, albeit with a more strategic focus.
Honda joined the list of cautious carmakers, saying this week that its 2030 EV sales projection would fall short of the previously targeted 30% share. The company is now reassessing its EV product lineup, investment timeline, and its proposed Canadian EV value chain, citing the current market slowdown.
Despite the shift in tone, none of the brands are abandoning EVs entirely. However, the short-to-mid-term future looks more complex than anticipated. Carmakers now acknowledge that mass EV adoption won’t happen without significant government incentives or a radical change in consumer behavior.
Is the EV rush premature?
The question facing the industry: Did automakers jump too soon into an EV-centric future? With consumer hesitation and fractured policy landscapes, the road to electrification may be longer and bumpier than expected.https://www.youtube.com/watch?v=5n5zyOzk4g8
