Future of Autos Not Going As Expected, But There Are Signs of Progress

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The future is further away than many predicted. While experts previously forecasted that by now the world will be quickly moving toward a battery-electric vehicle and autonomous future—not just for passenger cars, but for helicopters, taxis, shuttles and commercial vehicles—that's not the case.

Instead, predictions of Toyota Motor Corporation Chairman Akio Toyoda, Newsweek's 2023 World's Greatest Auto Disruptors Executive of the Year, are reality. The world's drivers, especially Americans, aren't ready or willing to give up their gasoline-powered vehicles, driving or independence quite yet. They're embracing hybrid technology, insisting on driving themselves (with advanced driver assistance systems only sometimes turned on) and learning to embrace enhanced, tech-forward interior ecosystems.

"Automakers aren't abandoning BEVs but recalibrating to meet consumer demand. The shift toward hybrids isn't a step back as much as it's a response to economic pressures, charging infrastructure limitations and regulatory and trade uncertainty," Paul Waatti, director of analysis at AutoPacific, told Newsweek.

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Car on the road with motion blur background. - stock photo hxdyl/Getty

"It's not about giving up on BEVs—it's about timing and offering a range of options to meet consumers where they are in the transition. Current market conditions demonstrate that there is no one-size-fits-all approach."

Automakers are set up for a busy few years ahead, debuting a host of BEVs. But questions remain about their widespread appeal. Waatti said: "A wider selection of BEVs is coming to all corners of the market in 2025, but the question isn't just about variety—it's about affordability and infrastructure. Without federal incentives, mainstream adoption could stall, especially in middle America, where charging access is still glaringly inconsistent.

"We're at an inflection point: If BEVs don't become more cost-competitive on their own, the market will stagnate. Incentives and tax credits help bridge the gap but that's not a sustainable equation. Long-term success hinges on automakers driving down costs through better battery tech and production efficiencies."

Commercial Applications

While all-electric passenger car adoption growth is slow, BEV commercial vehicles are becoming more pervasive. Rivian recently opened up sales of its EDV, or Electric Delivery Van, and ECV, or Electric Commercial Van, to the public after years of Amazon exclusivity. Chevrolet is now selling BrightDrop's vehicle line, Ram and Ford continue electric van deliveries and the United States Postal Service is now using next-generation electric mail trucks.

"Battery-electric vehicles are a natural fit for delivery fleets. With software-driven route optimization, delivery schedules can be mapped out based on cargo and range, eliminating the need for mid-route charging. Plus, BEVs have fewer moving parts, reducing maintenance costs and maximizing uptime. Beyond efficiency, BEV vans offer unmatched configuration flexibility. Thanks to their 'skateboard' chassis design and low center of gravity, they can be configured in ways traditional internal combustion engine vans can't, optimizing cargo space and drivability. Quieter, cleaner and cheaper to operate, BEV delivery vans aren't just a trend—they're the future of last-mile logistics," Tony Salerno, vice president at J.D. Power, told Newsweek.

AI is also a key ingredient in the autonomous vehicle equation. Commercial vehicle route mapping, in-car entertainment and predictive safety features can be enabled and enhanced by artificial intelligence. But, developing autonomous vehicle technology is expensive and profits are years, if not decades, away. Even as Waymo expands its limited fleet to more cities and Hyundai manufactures robotaxi versions of its Ioniq 5, General Motors stopped funding its Cruise self-driving taxi operations.

"Cruise's shutdown is a stark reminder that full autonomy is still a long-term play with massive hurdles. Waymo's expansion shows that autonomy isn't dead, but it does raise the question: Is this a tech company's game rather than an automaker's? Traditional original equipment manufacturers may need to rethink their role—are they building self-driving vehicles or just integrating third-party tech?" Waatti posited.

"Some narratives within the industry have shifted from 'when' to 'if' full autonomy will be viable in boundaryless urban settings. The business case for autonomous trucking or controlled environments like geofenced campuses still holds firm, but the road to fully autonomous consumer vehicles is looking far longer than expected," he said.

Racing Tech

Race cars are the opposite of autonomous vehicles, but they're just as important. As ever, they stand not just as entertainment for legions of fans, but as proving grounds for future technologies, including batteries and hybridization.

Said Waatti: "Cadillac in F1 [Formula 1], Ford and Genesis in endurance racing, and Audi in Dakar [off-road, desert racing] all signal that automakers still perceive value in motorsports—not just for marketing but also for developing new technologies that trickle down to production cars.

"It is a unique moment where automakers are prioritizing both extreme performance and extreme efficiency. Racing isn't just about lap times anymore; it's a proving ground for electrification, aerodynamics and battery durability. Look for motor sports to play a more prominent role in vehicle development and technology, not a smaller one."

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One area where BEVs are well-established and growing are delivery vans used for last-mile logistics, like these Rivian ones for Amazon.

Mobile Living Spaces

Automakers are also ensuring that the human experience is not forgotten about during the transition to BEV and autonomous vehicles. The car cabin is now a technology showcase that serves up equal parts information and entertainment.

"Starbucks might not want you lingering, but automakers sure do. The rise of in-car entertainment, spa-like seating and AI-driven interfaces shows that vehicles are evolving beyond transportation into mobile living spaces. Whether it's work, relaxation or entertainment, the car is becoming the next-gen 'third place,'" Waatti said.

These spaces are also points of revenue generation for automakers and their affiliated app partners. "Reimagining cars as extensions of personal space could drive one of the most profound lifestyle shifts in vehicle use—and automaker profits—since the rise of the SUV," Waatti said, forecasting that subscriptions for everything from seat heaters to movie streaming services are about to become more commonplace.

Fits and Startups

Over the past few years, startup automakers have been leading the charge, whether it is on the power or infotainment side of the business. But, having the right formula for long-term success remains elusive for many, with Canoo, Fisker and Nikola all put out to pasture with bankruptcy filings.

"The biggest test for startups isn't engineering—it's financial endurance. Tesla survived because it scaled at the right time. Rivian and Lucid must prove they can do the same before legacy automakers catch up and outpace them with broader portfolios and sheer volume," Waatti said.

"The race isn't just about innovation anymore—it's about scaling quickly," Salerno added.


How We Did It

To determine the candidates for this year's World's Greatest Auto Disruptors, Newsweek's Autos team, led by Senior Autos Editor Eileen Falkenberg-Hull, compiled a list considering every major automaker in each of the award categories. Brands, teams and individuals were nominated based on their cumulative merits for the past year, after combing through each candidate's accomplishments in the areas of future product planning, business strategy, technology, marketing, engineering, sustainability, manufacturing, community and research and development. To be considered, candidates had to be employing executive decision-making, corporate strategy, product development and publicity in a way that is driving fundamental, transformative change in the automotive market, with measurable real-world results—or have clear and demonstrable potential to do so. The Legacy award honors an individual who has achieved these results over decades in the industry. The list of nominees was narrowed by Autos editors. Winners were chosen after a consensus was reached amongst the Autos team and Newsweek top editors.


Read About All of Newsweek's 2025 Auto Disruptors Here

Cover 02MercedesApril 25-May 2, 2025
Cover 01RivianApril 25-May 2, 2025
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About the writer

Eileen Falkenberg-Hull leads the Autos team at Newsweek. She has written extensively about the auto industry for U.S. News & World Report, CarGurus, Trucks.com, AutomotiveMap, and American City Business Journals. Eileen is an alumna of Pennsylvania State University and the State University of New York at Buffalo.


Eileen Falkenberg-Hull leads the Autos team at Newsweek. She has written extensively about the auto industry for U.S. News & ... Read more