When periods of exuberance come to a close, ideas that once seemed to make a lot of sense no longer do. So it is in the European car industry. Slowing growth of electric vehicle sales has caused a series of corporate U-turns. While sharp swerves are never fun, the change in direction is sensible.

A decision by Volvo Cars on Thursday to cut loose its premium EV brand Polestar is the latest example of a strategic about-turn. Earlier this week, Renault axed plans to float its EV unit Ampere. A mooted initial public offering of Volkswagen’s battery unit, meanwhile, also looks some way off.

The wheels have not come off the EV market entirely. Sales growth in Europe is expected to come in at about 5 per cent in 2024 — a sharp slowdown from 2023’s 14 per cent growth, but hardly a crash. The market had simply overestimated the pace of change.