Until a few years ago, electric vehicles (EVs) were positioned as the future of personal mobility, with hybrid cars using internal combustion engines (ICE) and electric motors and batteries (EV drivetrain) to smooth the transition.
That is changing as several automakers take different paths, with some investing in green hydrogen while others still prioritize developing ICE-powered cars until a viable alternative emerges.
Egypt can accommodate all. EV imports were legalized in 2018, with incentives to import them and build charging stations announced in 2019. Meanwhile, the government plans to produce clean hydrogen in the Suez Canal Free Economic Zone. Lastly, the higher cost and low awareness of EVs mean ICE cars are still in high demand.
However, with ambitious plans to boost local car production from 80,000 units in 2024 to 400,000 by 2030, the government needs a clear direction and vision to develop the proper infrastructure and attract the right carmakers.
Most likely option
Currently, nearly all major automakers include at least one EV or hybrid variant in their lineups. Stellantis Group (which owns 14 brands in the United States and Europe) and VAG (Volkswagen-Audi Group, which owns 10 brands) offer at least one model built from scratch as an EV.
Other automakers already (or plan to) rely entirely on EVs. Tesla was the first to produce only EVs in 2003. Its success, having sold a total of 7.2 million units, encouraged other carmakers to adopt an EV-only strategy.
In 2017, Volvo announced that Polestar, its brand marketed as a performance division, would become a standalone EV-only brand (different logos, designs and mechanical platform). It would also transfer know-how to Volvo-branded EVs.
In 2022, BYD declared it would only invest in EV drivetrains, using existing ICE solely to charge batteries in hybrid models and low-end models for developing countries. Between 2019 (when it launched its first EV) and 2024, annual sales soared tenfold. In September, BYD said all its sales in Europe would be EVs by 2028.
Existing brands like Geely and Changan are also accelerating EV development. Meanwhile, auto startups such as NIO, Zeekr, and XPeng are all conceived, like Tesla, as EV-only carmakers.
Jaguar, Land Rover, and Range Rover (JLR) is taking it steady. “As part of its Reimagine strategy, the luxury car manufacturer will offer pure electric versions of all of its brands by 2030,” according to a press release in March.
One reason EVs are in the spotlight is their drivetrain technology has become commercially viable. R&D focuses on extending the battery’s lifespan, increasing range, and faster charging. Additionally, several governments offer incentives for purchasing those cars and building charging stations.
According to data aggregator Statistica, global EV sales rose from 300,000 in 2014 to 17.3 million in 2024, adding around 3.6 million electric cars over 2023.
Despite EVs’ promise of zero emissions, environmentalists are concerned. Green Cars, an advocacy platform, said, “EV batteries require key materials like lithium, cobalt, and nickel,” which are classified as rare-earth minerals that might be depleted. “Mining [those raw materials], often in remote regions, [poses] environmental and social concerns,” including water use and pollution, energy consumption and habitat disruption, noted Green Cars.
New Energy EV, an Egypt-based EV trader, explained, “The overall environmental impact of EVs depends on the electricity source used to charge them. Disposal and recycling of electric vehicle batteries remains a logistical and technical challenge due to their size and complexity.”
Cars 1.0 to 3.0
For some manufacturers, environmental concerns make EVs unsustainable in the long run. One possible solution is modifying existing cars and filling stations to use green hydrogen. “Available research [shows] it is apparent that ICEs can be easily modified for hydrogen combustion,” according to Science Direct, a platform publishing academic research. “To alleviate initial complications with limited fueling infrastructure, [those converted cars] may also be fuel flexible.”
Toyota is the most vocal advocate of green hydrogen cars. Its first mass-market hydrogen car was the Mirai sedan in 2014. The second generation launched in 2025. In February, the company announced it is developing a hydrogen powertrain “designed to meet the particular needs of the commercial sector with the same durability as conventional diesel-powered engines.”
Other carmakers taking the same route include BMW, which announced in September 2024 plans to “strengthen collaboration [with Toyota] toward the advancement of a hydrogen society,” a Toyota press release said.
The collaboration targets “equipping more passenger cars with [hydrogen] fuel cell systems” and developing third-generation fuel cell systems. BMW’s press release to mark the occasion said its first mass-produced green-hydrogen-powered car will go on sale in 2028.
Hyundai is also developing hydrogen-powered cars. In 2013, it converted its ix35 SUV to use hydrogen instead of fossil fuels. It then launched two generations of the NEXO SUV, a bespoke model built to only use hydrogen.
The carmaker, in October 2024, also launched the INITIUM, an “innovative concept vehicle … that converts hydrogen gas into electrical power.”
Honda is another advocate of hydrogen-powered vehicles, having sold the Clarity sedan exclusively in California, USA, between 2017 and 2021. In 2025, it launched the hydrogen-powered CR-V SUV, also exclusively in California. Honda said it will offer mass-market hydrogen-powered cars in 2027, featuring a next-generation fuel cell.
Lastly, Nikola Corporation, a hydrogen-powered commercial vehicle, founded in 2014. It primarily targets North America and has developed the HYLA hydrogen refueling highway, which connects Northern and Southern California.
In August, Fastech, an automotive tech consultancy, outlined six obstacles facing hydrogen-powered cars: “Lack of refueling infrastructure, high cost of hydrogen production, limited vehicle market with high costs, energy efficiency concerns, storage and transportation challenges, [and] public awareness and acceptance.
Playing it safe, for now
With concerns plaguing EVs and hydrogen-powered cars, many automakers are pledging continued investment in improving the efficiency of ICE vehicles and lowering their emissions.
They include Audi, BMW, Mercedes-Benz, Porsche, Volvo and VW, from Europe. From Asia, there are Toyota, Subaru and Mazda. Meanwhile, U.S. carmakers still investing in ICE include General Motors, Ford, Chrysler, and Jeep.
Lotus, in November 2024, went back on its 2021 announcement to become an all-EV company by 2030, instead saying it now targets using hybrid engines.
Tom Mitchell, president and CEO of Insequence, a consultancy, said ICE investment is feasible for mass-production carmakers that rely on global markets. “EVs are growing in popularity, particularly in North America, Europe and parts of Asia,” noted Mitchell. “But in many regions — especially in developing markets — the charging infrastructure simply isn’t ready to support a widespread transition.”
A third factor fueling investments in ICE engines is there is still room for development. Innovations show ICE cars are still evolving, “offering lower emissions, better fuel efficiency and performance improvements that matter to consumers,” Mitchell said. “Reinvesting in ICE … makes strong economic sense for automakers. Billions have already been invested in ICE manufacturing, supply chains and engineering. Maximizing the return on that investment helps stabilize companies’ finances as they ramp up EV development. “
Consumers also are not that eager to switch as “ICE vehicles, especially when refined and improved, remain more affordable upfront and often cost less to repair and maintain compared to EVs,” he said. “They also offer greater towing capacities, longer ranges and widespread fueling access, making them appealing for certain lifestyles and professions.”
Accordingly, “the future of transportation is not 100% electric,” Mitchell stressed. “The road there will be powered, in part, by smarter, cleaner and more efficient [ICE] in a parallel path [to] electrified and [hydrogen] fuel-powered vehicles.”
