11:11 am, January 19, 2026
Stellantis’s European boss has admitted there is currently ‘no natural demand’ for electric vehicles with carmakers left ‘burning cash’ as a result.
Emanuele Cappellano, the group’s head of enlarged Europe and European brands, said that profit margins are shrinking for automotive firms across the continent, leaving them heavily reliant on government subsidies.
In an interview with French media, the experienced industry figure said that EVs are currently leaving ‘no room for profit’ and are not not reflective of what consumers want to buy.
‘Today, the choice is this: either I pay a fine, or I lose money selling new vehicles,’ he said.
‘In Europe, profit margins are shrinking and are on the verge of becoming negative. This is a major concern for us today. There is no natural demand for electric vehicles.
‘Demand only arises when there are subsidies in various countries or when car manufacturers reduce prices by burning cash.
‘Therefore, trying to increase the market share of electric vehicles only generates losses for car manufacturers.’
His comments come around a month after the EU scrapped its 2035 ban on the sale of new combustion-engined cars after intensive lobbying by car manufacturers.
The UK is currently sticking to its own target of banning ICE cars by 2030, although the Daily Telegraph reports that the automotive industry is continuing to lobby Labour to relax the rules.
Carmakers also have to comply with ZEV mandate targets in the UK, making electric-only brands like Leapmotor key to Stellantis’s strategy.
It is a situation that the outfit is well-aware of, with Leapmotor boss Damien Dally telling Car Dealer last month:‘We have a job to do for Stellantis and this is really important.
‘We are an electric vehicle brand first and then we will launch REEV [Range Extended Electric Vehicles]. Fundamentally we are electric.
‘Most of the Chinese brands have kind of done it the other way, even though everyone thinks they’re all electric, they are not.
‘We have probably done it the hard way round but we do have a job to do for the ZEV mandate for Stellantis and this year we have been an enabler for our dealers to sell more battery electric vehicles towards their targets.’
In response to Cappellano’s comments, EV campaigners say that inflation is to blame for carmakers’ seeing shrinking profits, rather than a switch towards electrification.
Tanya Sinclair, chief executive of Electric Vehicles UK, said: ‘The environment is challenging, but one thing remains consistent. Consumer demand for electric vehicles is real.
‘Prices are becoming more competitive, choice is expanding, and vehicle quality continues to improve.’
