Car Manufacturers Are Leaning Towards Hybrid Vehicles: Future Strategy or Financial Survival?

In recent years, the global automotive industry seemed to be on the brink of a major shift toward electric vehicles (EVs). However, many major automakers are now turning back to hybrid and internal combustion engine (ICE) vehicles. This shift is largely driven by decreased demand for EVs, reduced profitability, and market regulations. Porsche, BMW, General Motors, and Mercedes-Benz are among the companies actively announcing new ICE and hybrid models.

Over the last five years, EV sales have been showing a rising trend, but figures from 2024 indicate a noticeable slowdown in the market. While China and the United States continue to invest in the EV sector, Europe appears to be taking a more conservative approach.

Porsche, facing sales risks, has announced plans to continue investing in internal combustion engine vehicles. BMW has also confirmed that it will develop not only hybrids but also ICE models, as large-scale EV production currently demands higher costs and offers lower profit margins.

Hybrid vehicles are seen as a compromise solution. They combine internal combustion engines with electric motor technologies, allowing consumers to benefit from both environmentally improved systems and fuel efficiency. Additionally, hybrids do not require a fully developed charging infrastructure, which remains one of the biggest challenges for EV adoption.

One of the main reasons for the growing popularity of hybrid cars is their lower operating costs and ability to adapt to stricter environmental regulations. Many countries are enforcing tough emission standards, but hybrids provide a way to meet these requirements more easily compared to traditional ICE models.

Experts estimate that between 2025 and 2030, the number of hybrids and ICE vehicles will increase by 9%. A total of 116 new hybrid models are expected to be released, indicating a growing interest from automakers.

At the same time, companies like Tesla and other pure EV manufacturers may find it challenging to compete with hybrids due to high costs and an underdeveloped infrastructure.

Recently, Mercedes-Benz canceled plans for 17 new EV models, suggesting that its EV strategy may be evolving with more caution.

While the electric vehicle boom is still ongoing, hybrid vehicles will play a significant role in the market over the coming years. Automakers are forced to maintain financial stability and adapt to new regulations and market demands as efficiently as possible.

Therefore, between 2025 and 2030, we will likely see not only the growth of fully electric cars but also a new evolution of hybrids, proving that internal combustion engine technology is not entirely out of the automotive world just yet.