Car makers slash EV prices, suspend production and extend petrol model availability as electric demand wanes

Car makers continue to respond to a slowdown in demand for electric vehicles with a raft of announcements that have added to concerns about the transition to zero-emission motoring.

In the last few days, one major manufacturer has announced a fresh round of price cuts across its EV range, another extended a suspension on production of one of its battery-powered models due to a lack of sales, and a popular maker said it will offer new cars with petrol engines for longer than previously anticipated.

The global downturn in sales of EVs has been triggered by a cocktail of diverging policies on green incentives, range and charge anxiety among drivers and the fact prices haven't come down as much as experts had forecast.

As such, 2024 has been awash with a wave of U-turns by legacy car firms in response to a lower-than-expected appetite for electric vehicles.

Analysis of EV registrations across Europe in August showed the largest annual decline in more than seven years following what has been dubbed a 'spectacular' collapse in sales in Germany and France.

According to JATO Dynamics' data for 28 European markets, a total of 125,070 EV units were registered in the eighth month of the year, marking a 36 per cent fall in year-on-year sales - the biggest deceleration recorded since January 2017.

Felipe Munoz, a global analyst at the company, said the motor industry is braced to face further challenges in the coming months as buyers are 'still grappling with the pressure to make the switch to electric, and EVs continue to be more expensive than already-pricey combustion engine cars'.

He added: 'Appetite for EVs among consumers is quickly diminishing. 

'There are many factors contributing to this, including the lack of clarity around incentives, high prices and concerns around the low residual value of EVs.'

In the UK, EV sales for the year to date are up just 10.5 per cent on 2023 figures - a far lower rate of accelerated uptake than industry and government had predicted.

As such, the automotive trade body has dramatically slashed its full-year electric car sales forecast with fewer than one in five new models entering the road in 2024 predicted to be battery powered.

Pessimism around the EV market has forced some car makers to take action around their own plans, with Vauxhall, Fiat and Skoda among the latest to confirm a change in tactics... 

Vauxhall slashes electric Corsa and Astra pricing

On Thursday, bosses at Vauxhall confirmed it had 'significantly' slashed the price of its Corsa Electric and Astra Electric models as part of its efforts to 'democratise access to EVs'.

Prices have been cut across both line-ups by around 10 per cent, with the biggest reduction on the Corsa Electric 50kWh Ultimate of £4,150, bringing the price down to £33,040.

The pricing realignment comes shortly after the car maker introduced new entry trim levels for both the battery Corsa and Astra to make them 'more accessible' to customers.

James Taylor, managing director at Vauxhall, said: 'The new pricing structure on Corsa Electric and Astra Electric is the latest in a number of measures we have taken to democratise access to electric vehicles – including becoming the first brand in the UK to offer an electric and petrol hybrid car for the same list price with New Frontera. 

'Our five-year PCP offer on electric models means customers can enjoy equivalent monthly payments with petrol models over four years, while the special edition Corsa Electric YES Edition and Astra Electric Griffin make going electric even more attainable.'

Execs at Vauxhall's parent company Stellantis in the summer warned it could halt UK production unless the government does more to boost demand for EVs.

Fiat's suspended 500e production extended

Italian car firm Fiat - also owned by the Stellantis Group - has halted production of its 500e for almost two months. having extended what was originally due to be a four-week suspension in response to a lack of demand for the car.

On 14 September, it announced it would put on hold the 500e assembly line at its Turin factory until 13 October. However, bosses said this week that the pause to outputs will be pushed back to 1 November.

Bosses told trade unions that the ongoing slump in demand has left the European EV market 'in deep trouble'.

Fiat said it has been 'working hard to manage at its best this hard phase of transition' to EVs when it first announced plans to temporarily down tools on the 500e assembly line at the company's historic Mirafiori plant.

The Italian brand has already this year confirmed it will go against its original plan to only offer the new-generation 500 with an electric powertrain due to a lack of appetite for EVs.

In July, the company said it had been forced to launch a hybrid 500 between 2025 and 2026 as part of a reactionary move to tackle a slowdown in EV demand.

Last year, almost two thirds (63 per cent) of all 500 registrations across Europe were of the previous-generation 500 with a petrol engine, despite the 500e offering the latest tech and a far more advanced package.

When Fiat discussed the reasons behind the decision to reintroduce a petrol-hybrid powerplant, it pointed to older drivers in particular not wanting to buy battery vehicles.

Similar decisions have been made by Stellantis sister brands in 2024.

For example, Jeep's Avenger SUV was - like the 500e - planned to be exclusively sold as an EV in the UK but has since been made available with a petrol engine due to a lack of demand for battery cars.

Citroen has taken the same decision with the C4 X.

Skoda to string-out petrol car production

Skoda is the most recent car maker to have delayed plans to kill off its current petrol models in the run up to the end of the decade in response to waning demand for EVs. 

The Czech marque - which is part of the huge VW Group - had previously set a schedule to release six EVs in the next two years.

However, it has since decided to delay some models which were due to succeed existing petrol cars in showrooms today.

CEO Klaus Zellmer told Autocar in an interview: 'To be totally honest, with the slowdown of the transformation into battery-electric vehicles, we're revisiting that [timeline].'

This will likely see the Octavia's availability remain for longer than expected, while smaller models - including the Fabia supermini, Scala hatchback and Kamiq compact-SUV - will continue to be sold across Europe until 2030.

How other car brands have reacted to slow EV sales...

Fiat isn't the only auto manufacturer to make big decisions about the transition to EVs. 

These are the other brands making major adjustments to their electric car plans: 

Toyota: Slashed EV production plans for 2026

Last month, the world's biggest car maker, Toyota, significantly slashed its electric vehicle production plans.

The automotive giant shortened its EV manufacturing ambitions for 2026 by a third, estimating it will make 1 million battery cars during the year rather than the 1.5 million it had previously forecast.

The Japanese brand has long been reluctant to accelerate its shift to fully electric cars.

Akio Toyoda, Chairman at Toyota, said in January that battery-powered electric vehicles will never dominate the car market and make up no more than a third of global sales.

Toyoda said the shift to EVs is not the answer when a billion people worldwide live without electricity: 'We also supply vehicles to these regions, so a single BEV option cannot provide transportation for everyone,' he commented.

'No matter how much progress EVs make, I think they will still only have a 30 per cent market share.'

Volvo: Ditched ambitious plan to become EV-only from 2030

Days before the news of Toyota's reduced 2026 production forecast, Swedish car maker Volvo - which has been at the forefront of bold EV claims - confirmed it had abandoned its plans to go exclusively electric at the end of the decade.

Bosses say they are now aiming for 90 to 100 per cent of global sales to be either pure electric or plug-in hybrid by 2030.

Volvo's previous target, which it set back in 2021 when the future EV landscape appeared more robust, was for its entire car range to be pure electric by 2030.

However, a downturn in EV sales worldwide has seen it - like some of its rivals - put the brakes on its green ambitions. 

Volvo, majority-owned by China's Geely, has attributed its change in policy to a 'slower than expected' rollout of charging infrastructure, the withdrawal of government incentives in some markets and 'additional uncertainties' created by recent tariffs on electric vehicles.

The latter references recent import levies introduced on EVs arriving from China, which have been upped to 100 per cent in the US and Canada, while the EU has also introduced provisional tariffs which could be upheld following a vote by governments later this year. 

Volvo Cars chief executive Jim Rowan said: 'We are resolute in our belief that our future is electric.

'An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience.

'However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption.

'We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability.'

Renault: Warns manufacturers are not on 'right trajectory' to go electric

Renault's chief executive in July cast doubts on the transition to electric cars, warning that sales are not on the 'right trajectory' to meet the UK's 2030 ban on new combustion-engined cars. 

With the Department for Transport confirming to This is Money that the Labour government will push ahead with its ambition to fast-forward the ban on sales of new petrol and diesel vehicles in Britain by five years to 2030, Luca De Meo, boss at the French car giant, warned that customers are not ready to switch to battery-powered vehicles and called for 'more flexibility in the schedule'.

Porsche: Waters down EV sales forecasts

Luxury car maker Porsche also said in recent weeks that the transition to electric vehicles to take longer than it thought. 

As a result, it has announced it is watering down its aims for 80 per cent of sales to be all-electric by 2030 and went on to confirm it will continue to sell the existing Cayenne SUV with combustion engines into the next decade.

Ford: Won't be EV-only by 2030 and is considering rationing petrol cars to meet electric targets in UK

Ford bosses have recently said its own plans to become an EV-only brand from 2030 were 'too ambitious'. 

It also suggested it could ration the number of new petrol cars it sells in the UK this year in order to artificially inflate its electric vehicle share to meet the biding ZEV mandate targets and avoid Government fines.

Mercedes-Benz: Extends availability of A-Class due to slow EV sales

Like Skoda, German auto giant Mercedes-Benz has also announced it too will extend the production cycle of one of its biggest-selling combustion cars due to concerns about EV take-up.

The A-Class hatchback, which was due to be retired by the end of this year, will continue to be built through to 2026 as part of a more 'flexible' Mercedes strategy for transitioning to EVs.

CEO Ola Källenius said the company will continue to produce combustion-engine cars based on existing platforms well into the next decade because price parity between EVs and petrols 'is many years away'.

The German luxury carmaker said sales of EVs, including hybrids, would account for up to 50 per cent of the total by 2030, five years later than its forecast in 2021 and has slowed its battery cell capacity plans.

VW Group: Adjusts EV sales predictions

Audi has scaled back the rollout of EV models due to falling demand while sister brand VW has also adjusted its production outputs due to a combination of parts shortages and lower-than-expected sales.

Europe's biggest automaker by sales hasn't changed its 2030 targets for EVs to make up 70 per cent of sales in Europe and 50 per cent in the US and China, despite VW execs repeatedly warning about slowing demand.

However, its group technology chief said in August VW's battery factory building plans were not set in stone and depended on the EV demand.

Luxury car firms: Bentley and Aston Martin back-track on EV plans 

Bentley had aimed for an all-EV lineup by 2030, but in March then-CEO Adrian Hallmark said hybrids would likely still be on sale after that.

And fellow British luxury car maker Aston Martin in February announced it has delayed the launch of its first EV due to a lack of appetite from its customers.