Ineos Delays Launch of Electric Vehicles Due to Consumer Uptake and Policy Uncertainty

Ineos, the company owned by British billionaire Sir Jim Ratcliffe, has decided to postpone the launch of its first electric vehicles, the Ineos Fusilier, citing a lack of consumer interest in electric vehicles and uncertainty surrounding government policies related to tariffs and taxation. The decision to delay the production of the low-emission vehicles, initially announced in February with production set for 2027, was attributed to the company's commitment to only producing vehicles that will sell in the market. Despite the delay, Ineos emphasized that the project is not abandoned but paused, as they believe bringing an EV to market is the right thing to do. The Ineos Fusilier, a smaller version of the Ineos Grenadier, was planned to be a plug-in hybrid and electric vehicle equipped with an electric motor powered by a battery and a range-extender option using a small gas engine. However, concerns over regulatory changes impacting the viability of the gas-engine range-extender have contributed to the decision to delay the launch. The company highlighted the importance of long-term clarity from policymakers to achieve net zero targets, especially in light of potential changes in government policies such as the Labour party's proposal to advance the ban on new petrol cars to 2030. The broader context of the electric vehicle market includes a recent slowdown in EV purchases in the UK and globally, attributed to high prices amidst a cost-of-living crisis. Additionally, the EU's decision to impose new tariffs on Chinese-made EV imports has raised concerns about a potential global trade war centered on electric vehicles. The introduction of additional import duties on Chinese EVs, on top of existing levies, has drawn criticism from industry leaders like BMW's chief executive, who warned that such measures do not enhance the competitiveness of European manufacturers. In conclusion, Ineos' decision to delay the launch of the Ineos Fusilier electric SUV reflects challenges in the EV market, including consumer demand, regulatory uncertainties, and global trade dynamics. The company's commitment to bringing an EV to market underscores the importance of clear government policies and market conditions to drive the transition towards sustainable transportation in line with net zero goals.