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Car manufacturers have articulated their focus on powertrain development, while adjusting their production strategies with cost reductions.

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Car Manufacturers Adapt to Changing Powertrain Landscape

In the rapidly evolving automotive industry, car brands are adapting their strategies to meet market demands and regulatory pressures. Here's a roundup of recent developments:

Cost-cutting measures at Nissan

Nissan is taking steps to reduce costs globally, cutting back shifts at three US factories and offering buyouts to employees. The move aims to reduce the workforce by over €2.5 billion, as reported by Reuters.

Alfa Romeo's multi-energy strategy

In contrast, Alfa Romeo has opted for a multi-energy strategy, expanding its range of internal-combustion engine (ICE) models instead of transitioning fully to electric vehicles by 2027.

London School of Economics study on vehicle lifespans

A study conducted by the London School of Economics used nearly 300 million UK MOT test records to chart the health of every vehicle on the road between 2005 and 2022. The study provides a comprehensive analysis of survival rates for different powertrains, confirming that newer all-electric cars now match the lifespans of models powered by internal combustion engines (ICE).

Car brands' powertrain focus

Several car brands are prioritizing different powertrain strategies based on their market and regulatory contexts:

  • Toyota continues to emphasize full hybrids and plug-in hybrids, leveraging its longtime leadership in hybrid technology.
  • Mazda focuses more on plug-in hybrids (PHEVs), with the 2025 Mazda CX-90 PHEV positioned as a powerful and family-friendly SUV option.
  • Hyundai and Kia have committed to expanding their hybrid and plug-in hybrid offerings while gradually incorporating battery electric vehicles (BEVs) to meet near-term emissions targets.
  • General Motors has recently shifted to increase investment in hybrid and plug-in hybrid production.
  • Honda is actively following a mixed strategy, emphasizing both hybrids and battery electric vehicles (BEVs).
  • Premium brands like BMW are focusing heavily on battery electric vehicles (BEVs) with dedicated electric platforms.

Regarding brands focusing on ICE, there is less emphasis in recent market trends and strategies as regulatory pressure and consumer demand for sustainability rise. However, some manufacturers maintain ICE vehicle production to serve markets or customer segments where charging infrastructure and EV affordability are concerns.

Legal disputes and expansions

  • Tesla is suing the EU over import tariffs placed on BEVs built in China, following challenges from multiple Chinese brands and BMW, Mercedes, and Geely.
  • Hyundai has completed the expansion of its test centre at the Nuürburgring, enhancing testing and development capabilities for future electric and high-performance vehicles.
  • Genesis will offer three battery-electric vehicles (BEVs) in the UK this year: the electrified G80, the electrified GV70, and the GV60. Future plans include enhancing its range with hybrid technology.

Renewed focus on hybrids and electric mobility

  • Renault prioritizes full hybrids (HEVs) and will not expand its plug-in hybrid (PHEV) range beyond the Rafale SUV.
  • SEAT signed the 'Casa SEAT Declaration' with governmental bodies, promoting electric mobility in Spain through purchase incentives, charging infrastructure, renewing public fleets with EVs, and communicating the advantages of the technology.

Looking ahead

Dr Viet Nguyen-Tien, research officer at the centre for economic performance at LSE, stated that all-electric cars are now a viable and sustainable alternative to traditional vehicles, a significant step towards achieving a net-zero carbon future. As the industry continues to evolve, we can expect more brands to adapt their strategies to meet the growing demand for sustainable, efficient, and reliable powertrain options.

[1] Toyota Camry Hybrid [2] Hyundai Hybrid Models [3] Mazda CX-90 PHEV [4] Honda Hybrid and BEV Models [5] BMW iX

In the fast-paced automotive industry, technology is playing a crucial role in the development of sustainable powertrains, with Toyota Camry Hybrid, Hyundai Hybrid Models, Mazda CX-90 PHEV, and Honda Hybrid and BEV Models representing significant steps forward in hybrid and electric mobility. Simultaneously, the finance sector is closely monitoring developments in this industry, such as legal disputes like Tesla's lawsuit against the EU over import tariffs on BEVs built in China. On the other hand, transportation is experiencing a shift as premium brands like BMW are focusing heavily on battery electric vehicles (BEVs) with dedicated electric platforms, like the BMW iX.

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