Despite EV boom, gas-powered cars still rule the road

In a global market inching toward electric vehicles, gas-powered engines still refuse to fade away. Despite massive investments in battery technology and climate goals pushing for zero emissions, traditional internal combustion engine (ICE) cars continue to dominate new vehicle sales worldwide.

Kamran Khan explored this automotive paradox in his vlog, questioning whether his next car should be gas-powered, hybrid, or electric. His inquiry mirrors a dilemma facing millions of consumers worldwide — and the answer, he says, is far from simple.

“Even with the EV and hybrid boom, gas-powered vehicles made up 64% of global car sales in 2024,” Kamran Khan said, citing data from the European Automobile Manufacturers’ Association. “They’ve been the backbone of the industry for over a century — and they’re not going away anytime soon.”

While hybrid and electric vehicle (EV) adoption is accelerating, market data shows a nuanced picture. Hybrid vehicles — the middle ground between traditional engines and full EVs — are projected to see a 43% jump in sales in 2025, with 116 new models launching worldwide.

Meanwhile, EVs are gaining momentum, particularly in China, where sales are expected to surpass those of ICE vehicles by the end of 2025, according to CBT News. China’s BYD sold over 4.3 million EVs last year, eclipsing competitors in volume.

In Europe, the shift is backed by policy. The European Union has proposed banning the sale of new gas and diesel cars by 2035. Yet even there, carmakers are voicing doubts.

Volkswagen, the continent’s biggest automaker, has indicated it may struggle to meet the deadline. Porsche, which saw EV sales for its Taycan model drop 49% in 2024, is now reviewing its electric strategy and investing €800 million in fuel and hybrid technologies.

“Even in the age of EVs, there’s still strong attraction for petrol engines,” Khan said, adding that manufacturers like GM, Mercedes, and BMW have pledged to continue investing in both ICE and hybrid models.

Mercedes plans to launch 19 new gas-powered cars and 17 battery-electric models between 2025 and 2027. Its CEO recently told investors that assuming a complete market shift to EVs by 2030 would be misguided — especially when gas-powered models remain profitable.

Across the Atlantic, General Motors has committed to upgrading its fuel-engine vehicles, even as it expands EV production. GM CFO Paul Jacobson said at a recent Barclays conference that gas cars may remain more profitable for longer than expected.

Meanwhile, EV adoption in the U.S. is lagging. In 2024, only 13.5% of all vehicle sales were electric, and the future under President Donald Trump’s administration remains uncertain. Tesla, long the face of the EV revolution, is facing increased competition — and regulatory headwinds.

Hybrids, often seen as a transitional technology, are gaining traction. Automakers are rolling out more fuel-efficient hybrid models to hedge against slower-than-expected EV adoption.

Still, the electric future is advancing. EVs accounted for 18% of global sales in 2024, and Financial Times projects that share will reach 22.6% by the end of 2025. S&P Global Mobility expects a 9% increase in new ICE and hybrid model launches this year.

But with EV infrastructure — such as charging stations — still limited in many countries, particularly in the Global South, full electrification remains a distant goal.

“Pakistan, India, Bangladesh — these markets aren’t ready for 100% electric fleets,” Kamran Khan said. “Even Europe is struggling to hit its targets.”

Companies like Toyota, Honda, and Suzuki continue to manufacture gas and hybrid models for underdeveloped markets, even as they introduce EVs in Europe and North America.

And even as European Union regulations require a 15% annual reduction in vehicle emissions starting in 2025, manufacturers are pushing back. BMW has demanded the 2035 fuel-engine ban be scrapped altogether.

The reality, Khan argues, is that car companies are hedging their bets. “Profit, not just policy, is driving the shift. Until EVs are cheaper, more accessible, and easier to charge, ICE and hybrid cars will remain essential.”

As for which car he’ll buy, Khan isn’t rushing his decision. “Each option has tradeoffs,” he said. “EVs are cleaner but costly. Hybrids are fuel-efficient but expensive to maintain. Gas cars are cheap upfront — but guzzle money at the pump.”

For now, like many consumers, he’s watching the industry race unfold — and keeping his options open.