Interest in ICE vehicles remains stable – buyers are choosing predictability

Global demand for internal combustion engine (ICE) vehicles is growing amid uncertainty surrounding electric cars. This is according to a report by the consulting firm EY.

The authors of the study note that a significant share of buyers is concerned about EV residual values due to the rapid emergence of new technologies and changing regulations. By contrast, ICE vehicles are widely perceived as more predictable in terms of long-term ownership costs.

Electricity prices are also playing a key role. In some EU countries, prices continue to rise, reducing or even eliminating the financial advantages of owning an EV. Another factor is the lack of affordable electric models: the market is still dominated by mid-range and premium vehicles, with few truly mass-market options.

Experts say that if the trend continues, automakers will need to adjust their product strategies by maintaining or expanding hybrid and ICE lineups, while governments may need to reconsider subsidy programs to better stimulate EV demand.