Peugeot has suspended its electrification plans in Australia as the French carmaker seeks to prioritise hybrids in its local line-up indefinitely.

Despite initially intending to launch three battery-powered models within the next few years, a spokesperson for Peugeot Australia stated that the strategy change reflects shifting market demand.

"While the introduction of 100% electric vehicles has been temporarily paused, the focus has shifted to hybrid solutions in response to strong consumer demand and the current market landscape," a spokesperson for Peugeot Australia told media sources.

Peugeot had previously announced delays to the launch of the E-3008 medium SUV, intended as a competitor to the Tesla Model Y, as well as two battery-powered city hatchbacks, the E-208 and E-308.

When asked whether a timeline for resuming its electric strategy had been established, the spokesperson confirmed, "At this stage, there is no confirmed timeline."

"Consumer feedback and developments within the electric vehicle sector are being closely monitored, and future electric vehicle offerings will be considered as Peugeot progresses along its electrification journey while addressing the needs of Australian customers," the spokesperson further added.

In September 2024, Peugeot removed plug-in hybrid models from its local line-up, discontinuing the powertrain option across four models less than three years after its introduction.

A major shift in focus involves petrol-electric engines, with the carmaker confirming that some form of mild-hybrid technology will be incorporated across all models, excluding commercial vans, by the end of 2025.

Peugeot joins a growing list of carmakers, including Audi, Volvo and Mercedes-Benz, in scaling back global electric vehicle targets.