The transition to electric cars may take significantly longer than anticipated due to stalled demand in Europe and America, according to Liam Butterworth, CEO of Dowlais, the parent company of GKN Automotive, one of the world’s largest parts suppliers.
Butterworth explained that the removal of electric vehicle (EV) tax incentives in countries like Germany has led to a slowdown in sales, impacting the entire industry.
This slowdown is resulting in reduced orders for component suppliers, as major car manufacturers such as Ford, Volkswagen, and Mercedes-Benz delay their production schedules.
Butterworth stated, “Consumer sentiment towards EVs, considering factors like insurance, residual values, and charging infrastructure, has clearly reached a point where the transition’s pace has significantly slowed.”
He believes that the transition to electric cars will take much longer than originally expected.
Concerns continued to grow on Tuesday with reports that Volkswagen might delay the launch of a new version of its ID.4 electric car from 2026 to the early 2030s.
