EY Report: Global Buyers Ditch EVs, Return to Combustion Engines

Half of global car buyers now plan to purchase a combustion engine vehicle within 24 months, according to a new EY report.

Why it matters: This 13-percentage-point surge signals a dramatic reversal from the EV momentum of recent years, driven by policy chaos, trade wars, and infrastructure skepticism.

The Details

• EY’s global mobility report, released Tuesday, shows consumer preference swinging decisively back toward internal combustion engines (ICE), reports Reuters.
• U.S. President Donald Trump last week proposed slashing fuel economy standards finalized under the Biden administration.
• The European Union may soon unveil a watered-down version of its 2035 combustion engine phase-out.
• Chinese buyers, despite purchasing more EVs, are “less interested in how their cars are powered, and more in their digital lifestyle integration,” said EY’s Constantin M. Gall.
• Gall added: “We had discussions with the European Union, as they are doing the due diligence now for their reassessment of the Green Deal… they are now looking more at scientific facts, less at convictions.”

By The Numbers

• ICE purchase intent: 50% of global buyers (up 13 percentage points from 2024)
• BEV preference: 14% (down 10 percentage points)
• Hybrid preference: 16% (down 5 percentage points)
• EV buyers reconsidering: 36% due to geopolitical developments

EVXL’s Take

This EY report confirms what EVXL has documented throughout 2025: the global EV transition was built on policy support that is now evaporating. When we covered U.S. EV sales cratering 24% in October after the federal tax credit expired, we warned that subsidy-dependent adoption models were unsustainable. Now that warning has gone global.

The policy retreat is accelerating on both sides of the Atlantic. Trump is gutting fuel economy rules while Europe’s automakers lobby to delay or weaken the 2035 ICE ban. The uncomfortable reality is that EVs still cannot compete on price and convenience alone in most markets.

Without subsidies propping up demand, consumers are making the economically rational choice. This does not mean EV technology has failed. It means the transition was sold to the public faster than the market could deliver.

Frequently Asked Questions

• Why are buyers returning to combustion engines? Policy reversals, trade wars, high EV costs, and charging infrastructure concerns are driving skepticism.
• What percentage of buyers now prefer EVs? Only 14% of global buyers prefer battery-electric vehicles, down 10 points from 2024.
• Is the EU still banning combustion engines in 2035? The ban remains official policy, but the EU is expected to announce a watered-down version soon.