Aston Martin delayed plans to postpone pure electric vehicles until 2030, while British luxury carmakers will extend the life of their fossil fuel-driven platforms, while peers reassessed the transition to cleaner mobility worldwide.
The company’s global customer base, including in India, still hopes for its popular internal combustion engine (ICE) models, Aston Martin’s Asia-Pacific president Greg Adams told reporters on Saturday’s scene of the country’s Conqueror launch. “The vast majority of customers want our 12-cylinder model to be at the top of the market. It’s important for us to listen to our customers.”
But Aston Martin will start electrification of its portfolio by launching its first plug-in hybrid later this year. Its share price on the London Stock Exchange fell by more than 28% during the financial year.
Global automakers reevaluate electric vehicle strategies
Automakers around the world have been reevaluating their initial plans to fully transition to electric vehicles as growth slows in key markets. In the U.S., EV sales grew by more than 7% in 2024, compared with 50% in 2023. EV sales in Europe fell 1.8% in 2024.
Aston Martin is the latest automaker in search of resilience in demand on ice. Tata Motors Ltd. told analysts at a March 11 meeting that it could extend the life of its ice platforms due to slowing adoption of electric vehicles in major international markets such as the United States and Europe.
“It may also consider launching new ICE variants in the future,” Motilal Oswal’s Aniket Mhatre and Motilal Oswal’s Aniket Mhatre and Amber Shukla wrote in a comment on March 11. “But it is unlikely that it will be heavy even if it uses an ICE product.”
Tata Motors’ British luxury car maker Jaguar Land Rover has also shelved plans to build electric vehicles at its parent company Chennai factory, Reuters reported.
Industry-wide slowdown in adoption of electric vehicles
Luxury automaker Porsche said in July 2024 that the transition to electric vehicles will be longer than previously thought. Ford delayed production of electric trucks and canceled production of electric SUVs in August 2024.
“With expectations of reduced subsidies for U.S. electric vehicles, and the expansion of the EU’s China Conference’s carbon dioxide (C02) emission regulations, most OEMs refocus it on their ice product pipelines, but still expect an increase in penetration of BEV,” Jay Kale, executive vice president of Elara Capital, wrote in a note on March 18.
Indian electric vehicle demand remains stable
However, demand for electric vehicles in India remains stable. A year ago, electric vehicle sales in India rose 20% in 2024, with Tata Motors and JSW MG Electric leading the show. Despite this, total electricity sales still account for only 2.5% of the overall automobile market.
“[Tata Motors] Electric vehicles are expected (in India), and many large OEMs are ready to launch electric vehicles. ” Motilal Oswal said.
Tata Motors, JSW MG Motor, Mahindra and Mahindra Ltd and Maruti Suzuki Ltd. have announced plans to launch more electric vehicle models in the coming years. Mahindra said in a statement last month that it has received more than 30,000 pre-orders for two new electric SUVs.
