The global auto industry has been full of surprises lately — and this time, the shock isn’t coming from the electric-vehicle world. A new report from EY suggests that traditional gasoline-powered cars are quietly regaining attention around the world. This shift is being driven by changing government policies, mounting trade tensions, and growing consumer hesitation about the true cost and infrastructure demands of owning an electric vehicle.
One of the biggest signals comes from the United States, where President Donald Trump has proposed easing fuel-efficiency rules that were tightened under previous administrations. The move aims to make gasoline cars more attractive and easier to sell. Meanwhile in Europe, conversations are getting louder about revisiting the 2035 deadline to phase out combustion engines — with the possibility of postponing or softening the targets to match real-world market conditions.
Konstantin M. Gall, who leads the mobility sector at EY, says the shift to electric cars is unfolding more slowly than regulators imagined. Even in China — the world’s biggest EV hotspot — the mindset is evolving. Many buyers now see cars as part of their broader digital lifestyle, rather than a choice centered solely on engine type, showing how quickly priorities are changing.
But the deeper story here is the global tug-of-war over industrial strategy. Western automakers view this slowdown as a chance to catch their breath in a race dominated by heavily subsidized Chinese EVs. On the other hand, electric-mobility advocates warn that stepping back now threatens progress on cutting emissions. That tension has already triggered new import tariffs in both the U.S. and Europe, aimed not only at Chinese EVs but also gasoline vehicles entering their markets.
EY’s findings reveal just how real this shift is becoming: half of all car shoppers globally plan to buy a combustion-engine vehicle within the next two years — a noticeable jump that reflects a clear change in mood. Interest in electric and hybrid models has dipped, and 36% of potential EV buyers now say they’re reconsidering their plans altogether because of geopolitical uncertainty, unclear long-term ownership costs, and concerns about charging infrastructure.
Taken together, these signals point to a global auto market entering a new phase of reflection. Consumer preferences are diverging based on local economic and environmental realities. And while electrification continues to move forward, the data makes one thing clear: combustion engines still have a major role in shaping buying decisions. This reality will force automakers and governments alike to navigate a far more complex landscape than many expected just a few years ago.
