The ban on internal combustion engine (ICE) vehicles in Europe has been postponed until 2040, and weak EV demand is not the only reason.
According to European analysts, major car brands are facing serious challenges in transitioning to full electrification. These include a shortage of qualified specialists, the high cost of factory modernization, and continued dependence on imported battery components.
Postponing the deadline is expected to reduce the risk of sudden workforce reductions, as the previously stated pace of electrification threatened the closure of some factories even before 2030.
In addition, EU infrastructure still falls short of requirements, as many regions lack a stable energy supply or the capacity to build networks of ultra-fast charging stations.
As a result, stabilizing the market may now be a higher priority than meeting environmental targets.