Remember when automakers were pledging to go all-electric as early as 2030? Sure, that came with an asterisk, but “electrified” was the buzzword and car companies knew that was the way the industry was headed. So just about every brand sunk endless amounts of cash into battery factories and electric tech.

Those same automakers are now quietly climbing down from the rooftop and walking back their ambitious plans. And while shelving that playbook, executives are dusting off the ol’ hybrid-hustle handbook like it was 2019 all over again.

Welcome back to Critical Materials, your daily roundup for all things electric and tech in the automotive space. On today’s docket: automakers are walking back their new EV projects to focus on hybrids instead, Chinese dealers are asking automakers to stop offloading excess inventory onto their lots and Xiaomi SU7’s waitlist hits nearly a year. Let’s jump in.

30%: Automakers Are Dusting Off The Hybrid Handbook

Photo by: Horse Powertrain

Blame politics, or economics, or high costs, or the challenges involved with ramping up a new technology. Either way, automakers seem to be cooling off on EV investments to focus on hybrids instead. 

That news comes straight from Car Wars 2025. Don’t get excited, that’s not some new George Lucas flick—it’s something more exciting (to some of us, anyway): a study by Bank of America into the global automotive pipeline. 

Automotive News reports that BoA’s study indicates that automakers are pulling back on the number of new models they plan to deploy in the next few years—gas, EV, you name it. Tariffs, uneven EV demand and uncertain regulations are among the culprits. Either way, BoA expects 159 models to be launched over the next four years, down from more than 200 last year. It’s “the lowest number we’ve had in decades,” the report said. 

The biggest pullbacks are on the EV front. Car Wars predicts 71 EV models will be offered over the next four years, The Detroit News reports—”about half of what the forecast had expected two years ago.”

More from Automotive News:

Speaking June 4 at an Automotive Press Association event at the company’s regional headquarters in suburban Detroit, [John Murphy, senior automotive analyst with Bank of America Securities] said Bank of America has an optimistic forecast of 16.5 million vehicles for 2025, and sees a market peak of “around 18 million” in 2028.

He said that there is pent-up demand in the market of “at least 10 million,” but a lot of that demand is for vehicles at the lower end of the market not currently met by the industry.

Murphy said that Bank of America expects 29 models to be launched in 2025, “and that’s the lowest number we’ve had in decades.”

Let’s be clear on something. BoA doesn’t believe that brands have suddenly fallen back in love with the combustion engine. This isn’t some fairy tale where the two rekindle the spark that ignites their gasoline love story. It’s a marriage built out of uncertainty.

Here’s one more quote from Murphy that really nails down the issue, emphasis mine:

“This is really an indication that a lot of what’s been going on with EV investment and distractions otherwise that have really pulled product planning in many, many different directions. What you’re seeing is the push out and cancelation of numerous models, mostly in EVs.”

Translation: the EV roadmap is actively being rewritten as geopolitical tensions result in supplier uproots, loss of incentives and tariffs that make the existing automotive supply chain completely untenable.

In fact, Murphy forecasts that the U.S. market share of EVs may have already peaked at as low as 8% and may not continue to climb over the next “four or five years.”

The study goes on to say that the EV crossover market is “saturated,” specifically. This means that fewer new crossover products as a whole, including electrified ones, will likely launch over the next four years.

That’s great news for folks who dislike crossovers, I suppose, but not-so-great news for anybody hoping for more EVs. At least we’ve still got the Rivian R3X, right?

The study suggests that we’ve finally regressed into the hybrid hangover era. One where automakers know that the combustion engine still has its days numbered, but it’s not yet time to go all-out on EVs.

Just know that it’s implausible for automakers to just kill off development of EVs altogether—it’s more like a small pause until there’s more stability in consumer trust and a clear path forward with global suppliers. 

60%: Dealerships Beg Automakers To Stop Offloading Excess EV Inventory On Them

Photo by: BYD

If you think America’s car buying incentives of cash on the hood is competitive, you haven’t seen anything. China’s EV market is ruthless, and its most recent price war is so fierce that even dealerships are begging automakers to stop the bleeding for their own good.

A new report from Reuters calls on a statement from the China Auto Dealers Chamber of Commerce, where the organization asked brands not for more cars to sell, but quite the opposite. The rare public plea was for automakers to stop flooding dealerships with excess inventory and slashing prices like the new corporate model was a permanent going-out-of-business sale.

Reuters brings the details:

Conditions facing car dealers have become “even more severe” amid a new round of hefty discounting since the second quarter, the China Auto Dealers Chamber of Commerce said in a statement.
 
Automakers should set reasonable annual production and sales targets and should not transfer inventory to dealers and force them to stockpile cars, the chamber proposed on Tuesday.

The cycle of payments to dealers should be shortened and dealers “shall not be coerced to withdraw from the network and close their stores in the name of optimising network channels,” it said.

Basically, brands aren’t able to sell nearly as many cars as automakers are throwing at them and dealership lots are looking a lot more like parking lots where inventory is just building up as BYD and its competitors engage in a race to the bottom. Meanwhile, that means less margin for dealerships and more pressure to move units that consumers just aren’t buying as quickly, despite lower prices.

The CADCC is asking OEMs for a few things: stop offloading extra inventory on dealers, increase dealership margins by knocking off the race to the bottom and speed up rebates to dealerships. These changes are something that the Chamber alleges will help keep dealership doors open and not end up like one BYD dealership group that shuttered 20 locations as it went out of business amid the ongoing price war.

Stock level in April reached 3.5 million vehicles, which is around 57 inventory days for China. That’s only a few days higher year-over-year, however, the overall passenger car market has decreased 9.4% month-over-month, meaning that inventory is piling up as sales are slowing.

In a market this crowded—with BYD, Geely, NIO, Xiaomi, Xpeng, Tesla and others all throwing elbows—it’s unclear if any one brand will blink first. Eventually, someone is going to run out of money (or patience) and will bow out to become more sustainable, but until then, dealerships see themselves as having to smile through the chaos and hope that there are enough lifeboats to keep lots afloat while the ship continues sinking.

90%: Xiaomi SU7 Waitlist Grows To Almost A Year

Photo by: Patrick George

China’s Apple Car is absolutely killing it right now. The Xiaomi SU7 popped up out of nowhere and consumers were so enamored by the offering that they’ve been showing up in droves to take delivery of what might be one of the country’s hottest cars.

In fact, the car is so popular that anybody waiting in line for one might want to bring a folding chair because it’s going to be quite the wait to get their hands on one. A new report notes that Xiaomi’s official delivery time has reached a whopping 350 days—nearly an entire year—to take delivery of one of its EV sedans after ordering.

Here’s the scoop from CarNewsChina:

According to the Xiaomi Auto official app, the delivery waiting time for the SU7 Pro electric sedan lies in the 47 – 50 week range. It means the car would be delivered 329 – 350 days after placing the order. For clarity, customers who booked the car on June 3, 2025, would get their long-awaited cars in a gap between April 27 and May 18, 2026.

[…]

The company aims to put the F2 plant into operation soon. However, this factory will mainly focus on the manufacturing of the Xiaomi YU7 crossover, which will start sales in July this year. So, the SU7 delivery waiting time could grow even further.

This is a pretty amazing feat. As mentioned earlier, China’s EV market is cutthroat. As if Western brands didn’t have a hard enough time right now, domestic brands are feeling the pressure too—no surprise given that more than 100 EV brands are competing in the country right now.

But Xiaomi, which is already an established electronics manufacturing company, just launched its first car last March. Since then, it smashed delivery record after delivery record. 

Perhaps more interesting is that Xiaomi’s sales seem to be largely unaffected even after the manufacturer upped targets and faced public blowback over decisions to limit the car’s power and a $6,000 performance hood with fake ducting. The only actual problem that consumers seem to have now is actually getting one in under a year.

It turns out that making a legitimately compelling EV with flagship specs for an affordable price is something that consumers actually want. And Xiaomi’s money-printing sedan was so successful that we have even higher hopes for its Model Y fighter (with a bit more Ferrari Purosangue-esque styling), the Xiaomi YU7.

So, hats off to Xiaomi for this one. What a wild success story for the brand so far.

100%: Would You Go (Back) To A Hybrid?

Photo by: Motor1

Let’s be real. EVs aren’t going anywhere. But with huge price tags, state (and possibly federal) legislation costing more up-front to register the battery-powered behemoths and a likely stagnation in models coming up, fresh new hybrids might look rather appealing for new car buyers.

I personally love driving an EV. It’s not even about the fuel or maintenance cost savings for me—they’re just damn fun cars to drive with execllent performance. I love my combustion cars too, but my daily driver will likely be something powered by a battery for the foreseeable future.

That being said, I want to know where you stand. With the near-term outlook on EVs dimming, will you consider a hybrid for your next car? Let me know in the comments.

Contact the author: rob.stumpf@insideevs.com