Hyperrive

Europe Pulls Back From EV Shift as Consumers Snub Pricey Models

  • Volvo joins VW and others in backing off bold EV targets
  • Shifts in strategy risk causing Europe to fall further behind
The electric version of the Fiat 500 costs double the price of its combustion-engine counterpart.Photographer: Nathan Laine/Bloomberg
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Europe is stalling for time in the electric-car race as the region’s automakers struggle with the transition and politicians become wary of fueling voter frustrations.

Volkswagen AG and Volvo Car AB this week scaled back grand ambitions to challenge Tesla Inc. and new Chinese rivals. The reasons for the setbacks are twofold: there aren’t enough affordable models to move past early adopters and the wealthy, and reduced government incentives have further sapped customer interest.