Policy changes, surging demand for hybrid vehicles increases shelf life for ICE vehicles

Ongoing BEV slowdown is driving global automakers to revise their powertrain strategies to continue offering ICE vehicles along with rolling out hybrid vehicles to address market demand

Even as several countries continue to derisk their global manufacturing and supply chain footprints amid geopolitical volatility, tariffs and trade conflicts, looming socio-economic challenges such as the rising cost of living and inflation have led to increased consumer preference for more affordable internal combustion engine (ICE) vehicles. This broad global trend is also supported by a slowdown in the demand for higher priced battery-electric vehicles (BEVs) and the lack of adequate and reliable electric vehicle charging infrastructure.