Ford Motor Co. (F) announced Wednesday that the company would abandon plans for its all-electric SUVs with three rows of seats and delay the release of its large electric truck, citing the need to focus on affordability in a crowded market.

Sales of electric vehicles are increasing, but more slowly than the industry had hoped. Consumers remain skeptical. Ford’s new plan to grow in the increasingly competitive market is to delay the launch of new vehicles and focus on making the cars cheaper and more durable. Annual investment in electric vehicles will be cut from 40% to 30%, the company said.

High prices and Range anxiety – the fear that an electric vehicle will run out of power if there is no charging station nearby – are among the most common reasons for not buying an electric car, according to consumers.

Ford announced it would abandon plans to develop electric SUVs with three rows of seats, which the automaker had previously planned to delay by two years to a launch date in 2027. Instead, Ford will take a $400 million non-cash write-down and focus on making hybrid SUVs with three rows of seats. The book by Toyota Motor.

In May, Ford CEO Jim Farley praised hybrid vehicles and hinted that they will be a central part of the auto market, not just a transitional tool for the introduction of electric vehicles. Ford said on Wednesday that it will also sell a hybrid version of its next-generation F-Series Super Duty Pickup Trucks that were a bright spot for the car manufacturer.

“As the world’s leading pickup truck manufacturer, we are future-proofing this valuable franchise of all sizes with hybrid, electric and other electrified powertrain options, giving individual customers and businesses the choice based on how they use their trucks,” Farley said in a statement.

In the area of ​​electric vehicles, Ford said it needs to focus on making its next electric vehicles cheaper, citing the advantages of Chinese competitors that have used vertical integration and low-cost development to keep prices lowThe automaker is working on a new low-cost platform on which its first vehicle – a mid-size electric pickup – will be released in 2027.

In this context, Ford has postponed the release of its full-size electric truck – “Project T3” – by more than a year, to the second half of 2027. This will allow the company to “leverage more cost-effective battery technology” and use other new technologies, it said in a statement. Before the T3 and the as-yet-unnamed pickup, Ford will launch an electric delivery truck, with production set to begin in Ohio in 2026.

Ford is also counting on the $7,500 tax credits and other benefits included in President Joe Biden’s Inflation Reduction Act (IRA), which could be killed in a possible second term for former President Donald Trump.

The automaker announced that it plans to move part of the battery production for the Mustang Mach-E from Poland to Michigan next year to secure IRA pension benefits. BlueOval Battery Park Michigan is also on track to begin manufacturing EV batteries, which will also be eligible for IRA benefits, in 2026. Production of batteries for the F-150 Lightning and all-electric delivery truck is scheduled to begin next year.

“An affordable electric vehicle starts with an affordable battery,” Farley said in a statement. “If you’re not competitive on battery costs, you’re not competitive.”