"It seems like only yesterday that brands were tripping over one another to announce that they were committing to an all-electric future. Nearly every badge under the sun sported some sort of electrification plan, though some were a bit more conservative with their approach than others. But now in 2025, automakers are sunsetting that electric-only approach and instead giving ICE another try-including the ultra-luxury set."
"Porsche has most recently found itself in the center of a perfect storm. Despite planning to convert 80% of its fleet to battery-electric by the end of the decade, the brand has since determined that its best course of action isn't to go all-in on EVs, but instead look at what the spectrum of electrification can offer its customers. Basically, it's a fancy way of saying that Porsche will favor a move to interim hybrids while still offering BEVs where appropriate."
"Mercedes-Benz is another brand that has since slowed its rollout of EVs. The EQ family of EVs was never a best-seller, maybe because their designs were "too ahead" of their time, or maybe because electrification didn't resonate with its core buyers. Either way, with tariffs making things worse, it recently paused the order books on its EQ family of EVs."
Ultra-luxury and supercar marques are postponing full-electric transitions and extending the life of combustion and hybrid powertrains. Buyer demand for battery-powered supercars remains weak, pushing manufacturers to prioritize hybrids and retain ICE halo cars. Porsche is shifting toward interim hybrids while still offering BEVs selectively. Mercedes-Benz slowed its EQ rollout and paused order books amid poor sales resonance and tariff pressures. BMW acknowledged that combustion engines will persist in its lineup. Tariffs, customer preferences, and slow BEV adoption in the luxury segment are driving a broader re-evaluation of electrification timelines.
Read at InsideEVs
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