FT News Briefing Carmakers are falling back in love with petrol
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Oct 8, 2025 Carmakers are reconsidering their focus on electric vehicles, pivoting back to petrol and hybrids due to policy shifts and slower EV adoption. Meanwhile, international investors are cautiously re-entering China's start-up scene, signaling a thaw after regulatory hurdles. Amid these shifts, emerging markets are experiencing a significant stock rally led by a declining dollar and attractive bond yields in countries like Brazil and South Africa. The discussion highlights the competitive risks for Western automakers as they navigate the evolving landscape.
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UBS Hit By First Brands Bankruptcy
- UBS has heavy exposure to the bankrupt First Brands through its O'Connor fund, risking large client losses.
- Bankruptcy filings show UBS's total exposure to First Brands exceeds $500 million, hitting big investors like Blackstone too.
Petrol And Hybrids Make A Comeback
- Carmakers are shifting back toward petrol and hybrids as EV sales rise slower than expected and policy changes reduce incentives.
- The US rollback of generous EV credits and industry calls for flexibility have prompted a multi-energy approach.
China Keeps Pulling Ahead On EVs
- China remains an outlier where EV adoption is surging and price parity is improving, keeping EV momentum strong there.
- Western carmakers risk ceding EV tech and software leadership to Chinese firms like BYD if they pivot too far back to petrol.