As EV rush fades, automakers pivot to multi-energy platforms

Posted by Talbot Payne on September 8, 2026

You'll know the 2026 Lexus ES 350h hybrid by the mail slot in its front fascia (versus the 2026 Lexus ES EV).

You’ll know the 2026 Lexus ES 350h hybrid by the mail slot in its front fascia (versus the 2026 Lexus ES EV).

Henry Payne, The Detroit News

Indeed, the eighth-generation ES was originally planned as an electric model as U.S. and California regulations pushed automakers toward EVs — and as Lexus targeted the Chinese market in addition to its traditional U.S. and Japanese markets.

Despite the government mandates, however, U.S. EV demand plateaued around 8% of the market in 2025. When a new Republican administration in Washington relaxed federal-and-state-imposed regulations and EV demand fell, Lexus shifted gears.

“The original intent was for the ES to be predominantly a battery-electric vehicle. But when we were given more flexibility and listened to our customers and what they were asking for, we made the shift into being more of a 80% hybrid, 20% BEV” mix, continued Hurlow. “(We were) able to make that shift as the market shifted on us. That’s the flexibility the multi-pathway approach (gives us).”

Read full article here.

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