Buyers globally are returning to petrol and diesel cars as demand for electric vehicles (EVs) softens, a new report claims.
Research conducted by professional services firm Ernst & Young has found that in the next two years, 50 per cent of all car buyers are planning to purchase a new or used vehicle with an internal-combustion engine – an increase of 13 per cent in just a year.
In the Asia-Pacific region, that figure increased by 10 per cent.
Meanwhile, the global appetite for EVs is just 14 per cent – a drop of 10 per cent over the same period – with those seeking a hybrid car accounting for just 14 per cent of all buyers, marking a five per cent decline.
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“Consumers are weighing the realities of policy shifts, cost pressures and uneven charging infrastructure,” said Constantin Gall, a leader within E&Y’s Global Aerospace, Defense and Mobility team.
“The long-term trend appears to be a shift away from a purely electric approach toward a more diversified future for vehicle powertrains, with different vehicle technologies serving different customer needs,” he said.
However, Mr Gall said globally, senior legislators were also influencing the direction of markets, due to evolving emissions targets and financial incentive programs.
“We are also seeing a more pragmatic, less ideological policy discussion. Policymakers are returning to a fact-based approach, allowing the market to do what it does best: identify the right solutions for different customers.”
The research claims that range anxiety, a lack of charging infrastructure, and high battery replacement costs are the major barriers against buyers choosing electric cars.
According to the report, those buying internal-combustion cars are more comfortable with purchasing a new car via online digital platforms, while the majority of EV buyers still prefer to purchase from dealerships due to the need for personal education on features and technology.
MORE: Petrol and diesel lose out as electrified cars near 30 per cent of the new-car market