In 2024, several major automakers revised their electric vehicle (EV) production targets and plans in response to sluggish consumer demand. While the automotive industry continues to view EVs as critical to their future, some manufacturers are adjusting strategies to align with current market trends. A key factor in the shift is increased consumer interest in hybrid vehicles.
Data from S&P Global Mobility showed hybrid vehicle sales grew faster than EVs in 2023. A J.D. Power study in May 2024 found consumers were slightly less likely to consider buying an EV compared to the previous year, with the primary concern being the lack of charging station availability. General Motors announced in July that it would delay the opening of its Orion Assembly EV truck plant by six months, pushing it to mid-2026.
GM also revealed plans to introduce plug-in hybrid vehicles in 2027. The company lowered its projected EV output for 2024 from 300,000 units to 250,000 units and declined to reiterate a target of 1 million units of EV production capacity in North America by the end of 2025. Toyota made significant adjustments this year.
In September, it was reported that Toyota would delay its plan to build 1 million EVs by 2026, reducing it from a previously announced target of 1.5 million.
Automakers recalibrate EV production goals
However, Toyota still aims to manufacture 1.5 million EVs per year by 2026 and 3.5 million by 2030, treating these figures as benchmarks rather than fixed targets.
Swedish automaker Volvo announced in September that it would drop its plan to go fully electric by 2030. Instead, Volvo is now targeting 90% to 100% of its 2030 global sales to consist of fully electric EVs and plug-in hybrids, with the remaining up to 10% allowing for a limited number of mild hybrid models if necessary. In August, Ford announced it would cancel plans to produce an all-electric three-row SUV, opting instead to leverage hybrid technologies for its next three-row SUV.
The company had previously delayed the launch of the new SUV from 2025 to 2027. Ford updated its electrification strategy and North American vehicle roadmap to include plans for an all-electric commercial van in 2026 and a pair of electric pickup trucks the following year. In November, Bentley revealed it would push back its goal of transitioning to a lineup of only battery-electric vehicles from 2030 to 2035.
Until then, the luxury automaker will continue to manufacture plug-in hybrid vehicles. Despite the adjustments, automakers are not abandoning their EV ambitions. Instead, they are recalibrating their strategies in light of current consumer preferences and market conditions, ensuring they can meet future demand while continuing to innovate in the hybrid and electric vehicle space.
