Electric Car Incentive Drop, Global Car Buyer Returns To Burning Machine

JAKARTA A recent report from professional service group EY (Ernst & Young) on Tuesday showed a significant shift in the preferences of global car buyers.

Consumers around the world are reportedly re-electing internal combustion engine (ICE) vehicles amid policy changes, trade wars, and increasing skepticism about electric vehicle (EV) infrastructure and costs.

This change was driven by a number of factors, including a policy reversal aimed at easing sales of gasoline-powered cars.

It is known, in the United States, President Donald Trump last week proposed cutting the standard for fuel savings that had been completed by his predecessor. Meanwhile, the European Union may also soon launch a softer version of the plan to stop combustion engines by 2035.

The leader of Ernst & Young Constantin M. Gall, stated that this policy change was a response to the EV transition which was slower than expected. He added that in China even though buyers buy more EVs, their interest is more focused on integrating the car's digital lifestyle, not on how the car is powered.

Reporting from Reuters on Thursday, December 11, the EY report outlines figures that support this trend:

Global Trade And Competition War

Although automakers welcome the easing of fossil fuel policies as industry saviors, electric transport groups argue that a fast EV transition is urgently needed to limit CO2 emissions.

Currently, Western policymakers have implemented measures such as import rates to protect their markets from China's massive subsidized EV threats. However, US and European automakers are now also facing stiff competition from Chinese gasoline-powered vehicles in the global market.