WHY AUTOMAKERS ARE SLOWING EV-ONLY PLANS

A few years ago, many car brands spoke as if the future had already been decided. Full electric. Fast timeline. No real turning back.

Now the tone is different. Brands still talk about EVs, but they are also making room for hybrids, plug-in hybrids, and petrol engines for longer than they first planned. That is not a random change in messaging. It reflects money, regulation, demand, and the reality that not every market is moving at the same speed.

For UAE buyers, this matters because it changes what will actually arrive in showrooms over the next two years. It also changes how you should think about resale, charging, and long-term ownership.

Why are automakers slowing EV-only plans?

The short answer is that the transition is proving more expensive and less predictable than many brands expected.

Some automakers spent heavily on EV plants, battery plans, and new platforms, then had to scale back or delay parts of those plans. Reuters reported that global carmakers booked around $55 billion in writedowns over the past year as they pulled back from earlier EV ambitions, and Stellantis alone later reported a €22.3 billion net loss for 2025 tied to €25.4 billion of unusual charges and a broader strategic reset.

Here’s the thing. When the cost of changing direction is that high, brands stop making one-way bets. They build backup plans. That usually means a wider mix of EVs, hybrids, and combustion models instead of a clean switch from one to the other.

Are automakers giving up on electric cars?

No. They are not giving up on EVs. They are giving up on the idea that every market, every customer, and every product segment will move to EVs at the same pace.

That distinction matters. EVs are still growing, and carmakers are still launching new electric models. What has changed is the certainty around timing. Instead of saying, “everything will be electric soon,” more brands are now saying, “we will stay flexible and follow demand.”

A simple way to think about it is this: the industry is not reversing, but it is taking a less direct route.

Why are hybrids making a comeback?

Because hybrids solve a real problem for both brands and buyers.

For brands, hybrids help reduce emissions without forcing every customer into a full EV. For buyers, they reduce fuel use and city driving costs while keeping the easy refueling and long-range convenience of petrol. That is especially useful in markets where home charging is not guaranteed.

This is why hybrids are no longer being treated like a short stop on the way to EVs. They are becoming a core part of the plan. Ferrari is a good example. The company cut its 2030 EV target from 40% to 20% and shifted to a new target mix of 40% combustion, 40% hybrids, and 20% fully electric by 2030, while still planning its first fully electric model for late 2026.

What this means is that hybrids are now being used as a long-term business answer, not just a temporary bridge.

Is EV demand actually slowing, or is this just an excuse?

It depends on the market.

EV demand is still strong in some places and weaker in others. Even where EV sales are growing, they may still be growing more slowly than brands expected when they made very aggressive investment decisions. That gap between forecast and reality is what creates trouble.

In Dubai, EV ownership is clearly rising. DEWA said the number of electric vehicles in Dubai reached 47,944 by the end of 2025, up 27.9% from the year before. It also said the Green Charger network had expanded to more than 1,860 charging points, with 23,600 registered users by mid-January 2026.

That is real growth. But it does not mean EVs have already become the default choice for everyone. Petrol and hybrid cars still make up the bulk of the market, and that is exactly the kind of mixed demand pattern that pushes brands to keep more than one powertrain alive.

If EV numbers are rising, why are brands still cautious?

Because rising numbers are not the same as universal readiness.

A city can have more chargers, more EVs, and more public interest, but many buyers still face practical limits. Not everyone can charge at home. Not every apartment building offers easy access. Public chargers help, but they do not fully replace the convenience of private charging for every driver.

In real life, it looks like this: an EV can be a very smart buy for someone with home charging and predictable daily mileage, but a frustrating buy for someone who depends entirely on public charging and drives long, irregular routes.

That is why brands are not only asking, “Are EV sales growing?” They are also asking, “How many buyers are truly ready to live with one?” Those are not the same question.

Are government policies also changing the EV timeline?

Yes, and this is one of the biggest reasons brands are staying flexible.

In Europe, the policy direction became less rigid than many carmakers expected. The European Commission’s automotive package said carmakers will need to meet a 90% tailpipe emissions reduction target from 2035, with the remaining 10% potentially addressed through measures such as low-carbon steel, e-fuels, or biofuels, rather than sticking to a simple zero-emissions-only sales outcome.

Why does that matter in the UAE? Because Europe shapes the product plans of many brands that matter here. If European rules become more flexible, brands have more room to keep combustion and hybrid models alive longer. That affects what gets developed, what gets approved, and eventually what reaches our market.

The catch is that policy can still change again. That is exactly why automakers do not want to commit too hard in one direction.

Which brands show this slowdown most clearly?

You can see it in both mainstream and premium brands, but premium brands are especially useful examples because they usually have more money, more pricing power, and more freedom to experiment.

Porsche said it expects around €3.1 billion in extraordinary expenses for 2025 as part of a strategic realignment tied to product strategy changes, battery activities, and organisational adjustments.

That does not mean Porsche has turned against EVs. It means even a strong premium brand is finding the transition expensive enough to rethink pace and priorities. Ferrari’s updated 2030 mix tells the same story from another angle: even brands that can charge more per car are not treating EV-only plans as the obvious answer anymore.

Will petrol cars stay around longer than expected?

In many segments, yes.

That does not mean the industry has abandoned electrification. It means brands are extending the life of petrol and hybrid models because customer demand is still there, rules are more flexible than expected, and EV adoption is still uneven. Premium performance cars are a clear example. A lot of buyers still want the range, sound, and refueling convenience of combustion, even if they are open to hybrid assistance.

For UAE buyers, this can help if you were worried that buying a petrol car in 2026 would immediately feel outdated. That outcome now looks less likely than many people assumed a couple of years ago.

Should UAE buyers still consider an EV in 2026?

Yes, but only if the ownership setup makes sense for your real life.

This is where many buying decisions go wrong. People compare EVs and petrol cars as if the answer is universal. It is not. The smarter approach is to match the car to your routine.

Ask yourself three practical questions:

Can you charge easily?

If you can charge at home or at work, an EV becomes much easier to live with. If you cannot, the experience depends heavily on public charging habits, and that can make ownership less convenient.

What kind of driving do you actually do?

If most of your driving is short urban trips, an EV can make a lot of sense. If you do frequent long drives across emirates with irregular schedules, petrol or hybrid may still be simpler.

How much do you care about resale certainty?

Some buyers are comfortable being early adopters. Others want stable resale and proven market demand. Right now, that confidence still varies by brand and model.

Here’s how it works: if your charging is reliable and your route is predictable, an EV can still be an excellent UAE car. If not, a hybrid may be the safer answer.

Does slowing EV-only plans mean ownership will get simpler?

No. In some ways, it means the opposite.

A slower EV-only transition often creates a more complex car parc, not a simpler one. Workshops will be dealing with petrol, mild hybrid, full hybrid, plug-in hybrid, and full EV systems at the same time. That means more variation, more software dependence, and more need for proper diagnostics.

A simple way to think about it is this: hybrids combine two worlds in one car. That can give owners useful flexibility, but it also means more systems to manage and maintain.

For UAE conditions, thermal management matters even more. Battery systems, hybrid components, cooling systems, and software all have to handle high temperatures and heavy daily use. That raises the importance of workshops that understand both the mechanical and electronic side of modern vehicles.

So what should UAE buyers do now?

Do not buy based on slogans. Buy based on your charging reality, your mileage, and how long you plan to keep the car.

If you have easy charging and mostly predictable driving, an EV can still be a smart choice. If you want one car that handles city trips, long drives, and uncertain charging with less hassle, a hybrid may now be the better fit. And if convenience matters more than anything else, petrol is not disappearing tomorrow.

That is the real story behind automakers slowing EV-only plans. It is not the death of EVs. It is the end of overconfident timelines. For UAE buyers, that likely means more choice, more overlap between technologies, and a market where the best answer depends less on headlines and more on how you actually live.