Ford Motor Company has announced that it will be delaying the production of its anticipated new electric vehicles.

Originally slated for release in 2025, Ford initially planned to release a new three-row EV SUV and an EV truck. However, the company is moving that timeline back to 2027 and will be re-evaluating what type of EVs it produces.

Explaining the decision, Ford emphasized the importance of allowing the consumer market for three-row electric vehicles to mature further while capitalizing on advancements in technology for EVs.

“The additional time will allow for the consumer market for three-row EVs to further develop and enable Ford to take advantage of emerging battery technology,” the company said.

“In parallel, Ford is expanding its hybrid electric vehicle offerings,” the company added. “By the end of the decade, the company expects to offer hybrid powertrains across its entire Ford Blue lineup in North America.”

The decision to delay the production of electric vehicles comes on the heels of Ford’s EV business reporting a substantial loss of $4.7 billion before taxes and interest last year, as reported by The New York Times.

Ford’s strategic realignment reflects a broader trend within the automotive industry, with many companies drawing back their initial plans or expanding electric vehicle production. Despite the growing momentum towards electrification, concerns persist among consumers regarding the affordability and reliability of electric vehicles, particularly in terms of charging infrastructure.

In February, Mercedes-Benz announced that it was abandoning its plan to exclusively sell electric vehicles (EVs) after 2030. The decision came after the company revealed that EVs were being sold at a much lower rate than it had initially projected.

“Customers and market conditions will set the pace of the transformation. The company plans to be in a position to cater to different customer needs, whether it’s an all-electric drivetrain or an electrified combustion engine, until well into the 2030s.” Mercedes-Benz said in a statement.