Some hard truths are forcing car giants to confront the EV transition.

• Car manufacturers in Europe are facing difficulties in adapting to the various obstacles they encounter while transitioning to electric vehicles.
• Volvo Cars has abandoned its plan to produce only EVs by 2030, citing the need to be "pragmatic and flexible" amid changing market conditions.
• In Europe, Volkswagen and other carmakers, including Ford and Mercedes, have announced plans to postpone earlier goals for phasing out sales of internal combustion engine vehicles.

European automakers are facing a range of obstacles as they strive to fully electrify their vehicles, including the absence of affordable options, a sluggish expansion of charging infrastructure, and the possibility of European tariffs on EVs manufactured in China.

On Wednesday, Volvo Cars announced it had abandoned its plan to sell only EVs by 2030, citing the need to be "pragmatic and flexible" amid changing market conditions.

The Swedish automaker aims for between 90% and 100% of its car sales to be fully electric or plug-in hybrid models by 2030, with up to 10% of its sales representing a limited number of mild hybrid models by that deadline.

In Europe, several carmakers, including Volkswagen, and Mercedes-Benz Group, have announced plans to postpone earlier targets for phasing out sales of internal combustion engine vehicles.

A lot of manufacturers are evidently delaying their electrification targets, as seen across the industry, according to Tim Urquhart, principal automotive analyst at S&P Global Mobility, who spoke on CNBC's "Squawk Box Europe" on Monday.

"Many manufacturers who had ceased investing in internal combustion engine technology have recognized that they need to continue investing in order to remain competitive and have products that people want to buy," he stated.

Urquhart stated that governments in crucial markets have implemented measures to motivate individuals to purchase battery electric vehicles (BEVs) through mandated targets, which he characterized as "increasingly problematic."

In the U.K., a mandate has been introduced that requires 22% of new car sales this year to be zero-emission vehicles (ZEVs). This measure aims to reduce the number of polluting vehicles on the road and will increase annually until it reaches 100% of new car sales by 2035.

Both regulators and manufacturers should adopt a practical approach to this issue, as manufacturers may be more advanced than regulators, according to Urquhart.

"At present, only the manufacturers are aware of what customers are looking to purchase, and it is not as many battery electric vehicles as anticipated," he stated.

'Collective over-enthusiasm'

Last week, Volvo Cars unveiled its revised EV plan and highlighted the obstacles that the auto industry faces in achieving its electrification goals.

The car manufacturer stated that the slower-than-anticipated deployment of charging infrastructure, the withdrawal of government incentives in certain regions, and the recent imposition of tariffs on EVs in various markets have caused additional uncertainty.

The transition away from fossil fuels requires "stronger and more stable government policies," according to Volvo Cars.

Urquhart responded on Monday to the question about whether industry challenges could discourage people from purchasing EVs by saying, "That's the point."

Anti-BEV sentiment is frequently reported in the mainstream media, although much of it lacks thorough research, Urquhart noted.

Consumers are confronted with a challenging decision as they have been using the same technology paradigm in the industry for 130 years. Now, they are being asked to drastically alter their driving, using, and charging habits, away from traditional petrol filling.

"There has been an excessive eagerness from regulators, original equipment manufacturers, and possibly even ourselves, towards battery electric vehicles (BEVs). However, convincing mainstream consumers to completely switch their vehicle usage and operation habits is a challenging task, especially when they do not fully comprehend the benefits of BEVs."

'A non-linear journey'

Despite short-term uncertainties, carmakers understand they cannot ignore EVs and the trend is clear.

European carmakers are facing increasing pressure as the shift to EVs is a non-linear journey with many uncertainties, despite the fact that total new car sales have not returned to pre-pandemic levels in their home markets, according to Rico Luman, senior sector economist for transport and logistics at Dutch bank ING, in a recent research note.

Some European carmakers' decision to delay the transition to EVs is aimed at maintaining profitability and preserving flexibility in a volatile market.

The slowdown in Western EV sales was due to multiple factors and was expected to be short-lived.

Luman stated in a Sept. 6 note that the direction of travel has not changed and investments in product portfolio makeovers are still necessary to maintain long-term market positions over the next decade.