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Industry leaders in the automotive sector have recently voiced apprehension regarding the feasibility of their proposed electric vehicle (EV) plans. 

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According to a Business Insider report, these executives have acknowledged the challenges that lie ahead and the obstacles that must be overcome to bring their ambitious projects to fruition.

During the recent third-quarter earnings call of General Motors (GM), the company's CEO, Mary Barra, who is known for her optimism regarding electric vehicles, admitted uncertainties in achieving the production goals of 100,000 EVs in the latter half of this year and an additional 400,000 by the first six months of 2024. Barra acknowledged that the transition to EVs is proving to be a bit bumpy.

Many are sceptical about the future of EVs, not just GM. Even Elon Musk, the CEO of Tesla, has expressed concerns about economic issues affecting vehicle demand. Mercedes-Benz has had to offer substantial discounts on their EVs to boost sales, which indicates the harsh reality of the EV market. Business Insider quoted CFO Harald Wilhelm as saying, "This is a pretty brutal space."

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Executives across the industry have noticed an increase in inventory and have found it challenging to sell EVs, even with significant price reductions and incentives.

The trend of price reductions in the EV market is becoming more common, with nearly all current EV models selling below their original sticker price. Some companies are even offering manufacturers incentives of up to 10 per cent.

The reason for this decrease in sales can be attributed to several factors, including cost considerations, infrastructure challenges, and lifestyle barriers that potential buyers face when considering the adoption of EVs.

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Automakers are responding to the challenges posed by the EV market.

Considering slowing EV demand, Ford has extended its deadline to achieve annual EV production targets and abandoned its future goal of producing 2 million EVs. Business Insider cited Honda's CEO, Toshihiro Mibe, who acknowledged the difficulty in gauging the shifting EV environment, leading the company to halt the development of an affordable EV.

In a recent statement, Akio Toyoda, Chairman of Toyota Motor, emphasised the industry's current awareness of the challenges that come with EVs. Toyoda, who was previously sceptical of the industry's focus on pure electric blueprints, acknowledged that "people are finally seeing reality." 

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