Global car buyers are returning to internal combustion engine vehicles due to policy shifts, trade tensions, and growing skepticism about the infrastructure and costs of electric vehicles. This trend was highlighted in a study released by professional services firm EY on December 9, 2025.
In a bid to boost gasoline vehicle sales, U.S. President Donald Trump proposed rolling back fuel efficiency standards in early December 2025. Meanwhile, the European Union (EU) may soon unveil a more relaxed version of its plan to phase out internal combustion engines by 2035.
Constantin M. Gall, EY’s global leader for Aerospace, Defense, and Mobility, noted that these policy changes stem from the slower-than-expected transition to electric vehicles.
He also observed that while Chinese consumers are buying more electric vehicles, they are less concerned about the type of engine and more focused on the vehicle’s integration with their digital lifestyles.
Why This Matters
As automakers push for a slowdown in the phase-out of fossil fuels as a lifeline for the industry, green transport advocates argue for a rapid shift to electric vehicles to curb COâ‚‚ emissions.
Western policymakers have implemented measures like import taxes to shield domestic markets from subsidized Chinese electric vehicles. However, U.S. and European automakers also face competition from Chinese gasoline vehicles in the global market.
Key Statistics
According to EY’s report, half of global car buyers plan to purchase new or used internal combustion engine vehicles in the next 24 months, a 13% increase from 2024. Preference for pure battery-electric and hybrid vehicles dropped by 10% and 5%, respectively, to 14% and 16%.
Among those considering electric vehicles, 36% are reconsidering or delaying their decision due to geopolitical developments, EY reported.
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