Aston Martin extends gasoline models due to slowing EV demand

Aston Martin is delaying its plans to release fully electric vehicles until 2030. This decision comes as global demand for electric vehicles (EVs) slows down. In the US, EV sales grew by over 7% in 2024, a significant drop from the 50% growth seen in 2023. Meanwhile, EV sales in Europe fell by 1.8% last year. The British luxury car brand will continue to produce its internal combustion engine (ICE) models. Many of Aston Martin's customers still prefer these high-performance cars, especially the 12-cylinder models. Greg Adams, Aston Martin's president for Asia Pacific, emphasized the importance of catering to customer preferences. Despite the delay in fully electric vehicles, Aston Martin will introduce its first plug-in hybrid electric vehicle later this year. The company has faced challenges, with its share price dropping over 28% in the current financial year. Other automakers are also reevaluating their electric vehicle strategies. Tata Motors has suggested that it might extend the life of its ICE models due to the slowing uptake of EVs in key markets. Jaguar Land Rover, owned by Tata Motors, has paused its plans to build EVs in India, citing similar reasons. Porsche and Ford are also among the manufacturers acknowledging that the shift to EVs will take longer than expected. With changes in EV subsidies in the US and adjustments to emission regulations in the EU, many companies are returning focus to their ICE products. In contrast, India shows a steady demand for electric cars, with a 20% increase in sales in 2024. While EV sales account for just 2.5% of the overall car market, major companies are preparing to launch more electric models in the coming years.