Sir Jim Ratcliffe has binned plans to build an electric vehicle just months after they were first unveiled, citing falling consumer demand.
Production of the Ineos Fusilier SUV in both pure electric and plug-in hybrid was forecast to begin in 2027, via Ratcliffe’s Ineos Automotive business.
The initial plan was to produce the Fusilier in the Austrian factory of Magna Steyr but production had already been pushed back prior to today’s announcement.
In a statement, Ineos Automotive said: “We are delaying the launch of the Ineos Fusilier for two reasons: reluctant consumer uptake of EVs and industry uncertainty around tariffs, timings and taxation.
“Charging infrastructure for EVs in most markets continues to grow and consumer confidence will match that, but for the industry to meet net-zero targets there needs to be long-term clarity from policymakers and a number of technology options available considering factors like raw materials, infrastructure and affordability.
The company added: “We are committed to bringing an EV to market not just because of legislation but because we want to. It is the right thing to do. But as a new small-volume manufacturer we can only produce vehicles that will sell.
The government is currently aiming to phase out new petrol and diesel car sales by 2035, while bringing in fines for carmakers who do not meet certain EV sales targets. Labour has pledged to bring forward the ban to 2030 should it win the general election.
“The Fusilier is an electric vehicle, but also provides the option of a range extender that uses a small low-emission petrol engine to charge the electric battery when external charging isn’t available.
“This low-emission solution for longer journeys or where charging is not possible would still be banned in both Europe and the UK in 2035, if not earlier in the UK should Labour be elected into government this week,” Ineos said in a statement.