Why are major OEMs getting cold feet over electric vehicles?

Porsche has become the latest automaker to waver in its pledge to increase the proportional share of electric vehicles (EVs) in overall sales. In a 22 July 2024 statement to Reuters, the company admitted that the transition from internal combustion engines (ICE) “is taking longer than we thought five years ago.”

Until recently, Porsche aimed to make EVs 80% of its sales by 2030. Now, it is committed to matching the pace of consumer demand and the technology’s general development. This position echoes General Motors’ Chief Executive Mary Barra, who has scrapped a one million EVs by 2025 sales target; Renault Group Chief Executive Luca de Meo, who is currently urging the EU to be more flexible in how decarbonisation targets are met; and Ford’s decision to retool a Canadian plant for a popular ICE pick-up instead of electric SUVs.

Why are so many major automakers in the US and Europe suddenly getting cold feet about the progress of electrification?