Aston Martin has delayed its plan to launch pure electric vehicles till 2030 and the British luxury carmaker will, instead, extend the life of its fossil fuel-driven platform as peers globally reassess the transition to cleaner mobility amid slowing demand.
The company’s global customer base, including in India, still wants the performance of its popular internal combustion engine (ICE) models, Greg Adams, Aston Martin’s president for Asia Pacific, told reporters on the sidelines of the Vanquish launch in the country on Saturday. “A large majority of customers want our 12-cylinder car models at the top end of the market. It is important for us to listen to our customers.”
However, Aston Martin will begin the electrification of its portfolio through the launch of its first plug-in hybrid electric vehicle later this year. Its share price on the London Stock Exchange has declined by over 28% in the current financial year.
Global automakers reassess EV strategy
Global automakers have been reassessing their original plans to transition completely to EVs as growth slows in key markets. In the US, EV sales rose over 7% on-year in 2024 compared with 50% in 2023. EV sales in Europe declined 1.8% in 2024.
Aston Martin is the latest automaker to seek comfort in the resilience of ICE demand. Tata Motors Ltd. told analysts in an 11 March meeting that it may look to extend the life of its ICE platforms due to the slowing adoption of EVs in key international markets such as the US and Europe.
“It may also consider launching new ICE variants in the future. However, even if it proceeds with ICE products, they are unlikely to be capex heavy,” Aniket Mhatre and Amber Shukla of Motilal Oswal wrote in an 11 March note, citing the company’s analyst meet.
Tata Motors’ British Luxury carmaker Jaguar Land Rover also shelved its plan to build EVs at its parent firm’s Chennai plant, Reuters reported, citing slowing demand for electric vehicles as one reason.
Industry-wide slowdown in EV adoption
Luxury carmaker Porsche said in July 2024 that the transition to EVs will take longer than previously thought. Ford Motor delayed the production of its electric trucks and cancelled the production of an electric SUV in August 2024.
“With expectations of reduced subsidy for EV in the US and extension of meeting carbon dioxide (C02) emission regulations in the EU, most OEM are refocused on their ICE product pipeline but still expect BEV penetration to increase,” Jay Kale, executive vice president at Elara Capital, wrote in an 18 March note.
India EV demand remains steady
However, EV demand in India remains steady. Electric car sales in India rose 20% over a year earlier in 2024, with Tata Motors and JSW MG Motor leading the show. Still, total electric sales still make up just 2.5% of the overall car market.
“[Tata Motors] expects EV adoption to pick up (in India), with many large OEMs preparing to launch EVs,” said Motilal Oswal.
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 had received more than 30,000 bookings for its two new electric SUVs.
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