When it comes to things like policy there is always a huge influence of various parties, let’s call them lobbyists, to stay polite 😊
After 2015 two things happened in parallel. First of all, the diesel scandal. And while apart from VW no one paid significant amounts in fines the European car manufacturers saw the writing on the wall for their key - if flawed - technology.
And the electric revolution started happening. Tesla - back then still Model S only - was scaring the classical manufacturers into action and the first serious grumbling of moving to electric were noticeable from China.
Now the management of European car manufacturers knew full well that they were poorly equipped to develop several technologies in parallel. VW could have done it at a stretch and Toyota but apart from that no one had the necessary financial muscle or in fact the engineering capacity to do all at once and well.
So the lobbying efforts fully focused on what back then was called technological clarity - there were countless calls to ensure that regulation was clear enough to allow them to focus on one technology without fear that someone else could overtake them in parallel with something else. The politicians didn’t come up with electric on their own and if you read the actual legislation, there was always the possibility of all types of technologies, as long as there were no CO2 emissions of newly sold cars from 2035 onwards.
As soon as the frame was set there was a race started by various manufacturers claiming how they would get there sooner. And to top it all off, many would insource the software development as well, like Tesla.
This combination of introducing a fully new propulsion technology and insourcing software development at the same time was a massive fail for pretty much everyone. VWs Cariad malaise is well publicized, Toyota’s similar story less so.
So the vehicles did not get developed in time, were more buggy than one expected of the brands (Tesla was always judged differently during those early years) and many brands frankly also botched the design, scaring off their traditional customers while attracting too few new ones.
And unlike a player like Tesla they could not afford a decade or so of deep losses, as their stock market story was one of steady dividends, not of a hypothetical moonshot.
So at some point they figured out that the story they were peddling didn’t fully fly and started backtracking on their own communication, lobbying and strategies to ensure that they generated the returns in the short run.
As for Porsche, let’s not forget that the Taycan was initially a huge success and that it propelled Oliver Blume to the VW CEO posting. It was the first European EV that could outperform Tesla on their own communication boasting front and could do that for as many runs as you pleased without melting down. The packaging was poor (but then it’s a Porsche 🤷🏻♂️), though, which cost it sales in the Asian markets I suppose and that’s where it suffers still. The ADAS functionality was mid-tier at best, which likewise didn’t help. But these are all issues afflicting the whole company, not just the EV lines.