Issue Automotive: technology-agnostic strategies replace all-electric targets

Summary

Many carmakers have moved away from pledges to go fully electric by 2035 toward strategies that are technology-agnostic and led by consumer demand. EY describes this as a pragmatic response to the difficult physics and costs of pure battery electric vehicles, at least in the short term. It argues the shift optimises natural and financial capital together, citing figures showing that hybrids deliver 80% of the emissions benefit for only 30% of the cost increase of electric vehicles. Regional paths differ, with European makers turning to plug-in hybrids to meet CO2 targets and Asia leading on range extenders that use small engines as generators. In the US, combustion engines still dominate, though the market is slowly electrifying too.