Global Automotive Consumer Study: Interest in Electric Cars Declines as Internal Combustion Engines Gain Ground

Electric Car Interest Declines Globally

Consumer interest in electric vehicles (EVs) is softening in the world’s largest automotive markets, according to the Deloitte 2025 Global Automotive Consumer Study. This shift indicates a rising preference for internal combustion engines.

Shifting Preferences for Internal Combustion Engines

Several key markets are seeing a resurgence in demand for traditional gasoline-powered cars. In Germany, the preference for internal combustion engines rose to 53% (up from 49% in 2024). Japan saw a similar trend, with 41% of consumers now favoring these engines, compared to 34% the previous year. India experienced a rise to 54% (from 49%), and China climbed to 38% (from 33%).

The United States, however, continues to show a high proportion of consumers opting for conventional engines, with 62% choosing them (compared to 67% in 2024).

Key Factors in Car Brand Choice

Regardless of engine type, price and product quality remain the most significant factors driving consumer choices. In Germany and the United Kingdom, 62% of consumers cited these as their primary criteria. The same held true for the USA (58%) and South-East Asia (65%). Vehicle performance is the top priority for consumers in South Korea (59%).

Motivations and Concerns Regarding Electric Vehicles

Those still planning to purchase an EV are primarily driven by environmental concerns, as seen in India (63%) and Germany (54%). Lower fuel costs are also a significant motivator in South-East Asia (64%), Japan (61%), and the United Kingdom (59%). Government incentive programs are among the top three factors in favor of EVs only in Germany, cited by 33% of consumers.

“The declining interest in electric vehicles represents an additional challenge for automotive players, especially for those in the European Union,” said Bogdan Barbu, Tax Partner and Automotive Industry Leader at Deloitte Romania. “The EU faces both growing global competition and regulatory pressure to reduce CO2 emissions.”

Declining demand is reflected in data from the European Automotive Manufacturers Association, showing a 5.9% decrease in EU EV sales in 2024 compared to the previous year. Mr. Barbu added that the European automotive industry needs greater flexibility in its transition to green vehicles, with climate requirements suited to market conditions. He noted that European authorities are already taking steps to address this. Major automotive manufacturers are also advocating for a restructuring of EV production stimulus programs, as several European countries, including Romania, have scaled back or eliminated subsidies for EV purchases.

Market Competition and Brand Loyalty

According to the study, the percentage of consumers intending to switch vehicle brands at their next purchase is increasing. This has risen to 76% in China (from 73% in 2024), 71% in South-East Asia, 51% in the United Kingdom, and 46% in Germany, signaling increased market competition. Loyalty to domestic brands is also decreasing. Consumers outside of Japan (where 76% remain loyal to domestic manufacturers) are less concerned with the country of origin, provided the vehicle meets their needs. These sentiments are seen in the United Kingdom (68%), China (52%), Germany (50%), and the USA (47%).

Major Concerns Regarding Battery-Electric Cars

Participants in the study expressed specific concerns regarding battery-electric cars: range (Germany – 54%, the United Kingdom – 52%), price (Germany – 45%, the United Kingdom – 49%), charging time (Japan – 49%, the United Kingdom – 47%), the public charging infrastructure (Germany – 43%), and battery safety (South Korea – 49%).

Recycling of batteries is also a significant concern. While consumers in Japan and South Korea believe car manufacturers should manage batteries throughout their lifecycle (35% and 31% respectively), Germans prioritize the battery manufacturer (21%), and a dedicated recycling entity is favored by consumers in China (26%), South-East Asia (25%), and the United Kingdom (19%).

Study Methodology

The Deloitte 2025 Global Automotive Consumer study surveyed approximately 31,000 consumers across 30 countries, including 13 European nations: Austria, Belgium, the Czech Republic, France, Germany, Hungary, Italy, Netherlands, Poland, Spain, Sweden, Turkey, and the United Kingdom.

Bogdan Barbu, Tax Partner, and Automotive Industry Leader, Deloitte Romania