Rapid rises in car insurance premiums and repair costs in Europe are weakening the cost-saving appeal long seen as a key advantage of switching to electric vehicles, an analysis shows. While battery prices keep falling and the EV market grows, surging insurance and maintenance expenses, shortages in charging infrastructure and added strain on power grids are emerging as hurdles. Oil price gains support demand, but wider adoption may hinge on costs, chargers and grid integration.

Honda has shifted to a hybrid-focused strategy after recording more than $9 billion in losses linked to its electric-vehicle business. It booked 1.45 trillion yen in EV-related losses for the fiscal year ending March 2026 and abandoned its goal of phasing out gasoline vehicles by 2040. The company plans new hybrid models and changes North American production, including repurposing an Ohio EV hub and converting some battery lines at an LG Energy Solution joint venture.