Ultra-luxury carmakers rethink EV future as customers prefer hybrids and ICE

Lamborghini, Ferrari, Porsche, Bentley and others slow down EV plans as demand for electric supercars stays weak, keeping hybrids and combustion engines alive.

Not long ago, ultra-luxury automakers were racing to prove their commitment to a fully electric future. In 2025, the tone has shifted. Lamborghini, Ferrari, Koenigsegg, Rimac, Bentley and others are now easing off ambitious EV targets and embracing hybrids as a bridge technology.

The main reason is clear: customers in this rarefied market are not lining up for battery-powered supercars. Lamborghini CEO Stephan Winkelmann summed it up by saying that it is not about technical capability, but about fulfilling customer dreams—and most still dream of internal combustion.

Porsche illustrates the challenge vividly. The brand originally aimed for 80% electrification by the end of the decade. Instead, it has lowered its 2025 profit forecast to just 2% and acknowledged a €1.8 billion hit tied to its EV portfolio. Porsche now plans to offer internal combustion, hybrids and full-electric options across its segments.

Mercedes-Benz has gone further by suspending U.S. orders for EQS and EQE models, citing weak demand and tariff pressures. BMW had already made it clear that combustion engines will never disappear from its lineup.

Bentley once pledged to go fully electric by 2030, but its Beyond100 plan has been stretched to 2035, relying heavily on plug-in hybrids and shared investments within Volkswagen Group. Aston Martin and Lotus are also slowing their electrification push.

Resistance is strongest in the hypercar world. Mate Rimac openly stated that Bugatti and Rimac buyers do not want fully electric machines. Christian von Koenigsegg echoed this, calling the market appetite for such cars “extremely low.” Ferrari, despite working on its first EV, has faced internal concerns and assessments that demand remains at “zero.”

Political and economic pressures compound the issue. In the United States, 100% tariffs on Chinese EVs and the winding down of federal tax credits have reshaped the market. In Europe, a 2035 ban on new combustion engines looms, but exemptions for synthetic fuels offer breathing room for high-end marques.

Meanwhile, China—a market once expected to drive luxury EV demand—is experiencing overproduction and price dumping. The sector’s competitive edge is increasingly defined by local newcomers. BYD’s Yangwang U9 Xtreme, for instance, set a speed record of 496 km/h, a striking achievement that highlights how challengers are redefining the narrative.

Yet even such milestones have not swayed wealthy buyers. For them, the visceral roar of a combustion engine, the vibrations and the driving experience remain more compelling than the quiet acceleration of electric motors. Maintenance costs, a selling point for mass-market EVs, are of little concern in this segment.

The result is a more cautious, balanced approach to electrification in the ultra-luxury sphere. Electric supercars will arrive, but later than once promised—and likely alongside hybrids and combustion engines that continue to capture the hearts of traditional enthusiasts.