Ineos delays launch of electric SUV due to weak demand and policy confusion

The electric car industry is facing some challenges, as evidenced by the recent delay in the launch of Ineos’ Fusilier electric SUV. The company cited weak consumer demand and uncertainty surrounding government policies as the reasons for the delay.

In February, Sir Jim Ratcliffe, the founder and chief executive of Ineos, announced plans to produce the low-emission vehicles, with production slated to begin in 2027. However, the project has now been put on hold indefinitely.

The Fusilier was intended to be marketed as a plug-in hybrid and electric vehicle, with an electric motor powered by a battery and a range-extender option using a small gas engine. However, regulatory changes that could impact the viability of the gas-engine range-extender have contributed to the delay.

Ineos stated that the reluctance of consumers to adopt electric vehicles, along with industry uncertainty surrounding tariffs, timings, and taxation, were key factors in the decision to postpone the launch. The company emphasized the need for long-term clarity from policymakers to help meet net zero targets.

The EU’s recent move to impose new tariffs on imports of Chinese-made EVs has also added to the challenges facing the electric car industry. These tariffs, which could reach up to 48% on Chinese-made EVs imported into the EU, have raised concerns about a potential global trade war centered on electric vehicles.

Despite these challenges, the push towards electric, hybrid, and low-emission vehicles remains a crucial part of efforts to combat climate change and reduce emissions. As the industry continues to evolve, it will be important for policymakers, manufacturers, and consumers to work together to overcome obstacles and drive the transition towards a more sustainable future.