MenuMENU
SearchSEARCH

EVs Likely to Survive Losses

Hit from curtailing of government incentives elsewhere proved short-lived.

September 23, 2025
EVs Likely to Survive Losses

Ford CEO Jim Farley announcing in August a new assembly structure for the automaker's EVs.

Credit:

Ford

2 min to read


Though the outlook for electric-vehicle sales has been dimming, one market watcher foresees only a temporary slowdown in adoption.

Based on patterns seen earlier in other countries, the end of government subsidies adopted to encourage EV sales shouldn’t be the death of the segment, J.D. Power analysts predict.

EV adoption in the U.S. faces a raft of obstacles erected by the Trump administration, including the Oct. 1 end of federal tax credits, weaker vehicle emissions restrictions, and scuttling of multiple states’ gas-powered car sale bans next decade. California, which leads the country in EV sales, said it won’t fill the tax credit gap by resuming its own subsidy. 

U.S. EV adoption already lagged that of other countries and regions, slowed in part by limited charging infrastructure in more rural areas. But the loss of incentives stands to slow its progress. Given lower demand than anticipated, automakers had pulled back from plans just a few years ago to convert their entire lineups to electrified models, though they haven’t abandoned EVs, by any means. In fact, Ford recently announced a new assembly line structure for EV production, along with dealership chargers open to the general driving public.

However, based on EV adoption evolution in some other countries, the loss of government incentives shouldn’t threaten sales in the longer-term, according to analysis by J.D. Power. When national EV subsidies were phased out in both Canada and Germany, for instance, it said sales quickly sank but then gradually started returning to normal levels.

“… we see a fairly predictable trend in supply-demand dynamics taking root in the U.S. market,” J.D. Power said in its report.

Its research shows that U.S. consumer interest in EVs hasn’t wavered. Of those looking to buy or lease in the next 12 months, 59% say they’re very or somewhat likely to consider EVs, similar to interest levels over the past year.

Just the knowledge that the federal tax credit will expire drove many to buy or lease electric in recent months. In August, EVs’ new-vehicle retail market share tied December’s single-month record of 11%, up from 8% in May, J.D. Power said.

Still, consumers are price-conscious in today’s inflated market. Among those unlikely to go electric, 45% said price is a top factor in their hesitation, up three percentage points from July.

LEARN MORE: EVs Undergo Crash Tests With Mixed Results

 

 

 

 

 

 

 

 

 

More Industry

Vintage convertible driving along a desert highway, capturing the freedom and cultural impact of early American car travel.
IndustryJanuary 1, 2026

Driving America Forward

As America turns 250, explore how the automotive industry shaped jobs, culture, innovation, and mobility from Detroit assembly lines to today’s EV era.

Read More →
Industryby Hannah MitchellDecember 26, 2025

2025 Sales Expected Up

The series of sales spikes this year that were inspired by shifting U.S. policies defied the drag of those same changes, according to one early forecast.

Read More →
Industryby Hannah MitchellDecember 24, 2025

Tundras in Tokyo

Toyota said it plans to sell some U.S. made models to its home-country consumers starting next year, despite the vehicles’ large size for a small-car culture.

Read More →
Ad Loading...
Industryby StaffDecember 23, 2025

Black Book: Weekly Market Update

Despite the week's softening conditions, the market analyst said demand for used vehicles showed in competitive bidding for newer units in better condition.

Read More →
Product & Technologyby Lauren LawrenceDecember 23, 2025

In-Vehicle AI Predicted to Spike

Frost & Sullivan expects a $238 billion market opportunity for the technology in automobiles by 2030 as AI applications shift to more mass-market applications.

Read More →
Industryby Hannah MitchellDecember 23, 2025

December Doldrums

A consumer index finds continued declines in both outlook and current conditions sentiment across nearly all demographics as big-ticket spending plans fall.

Read More →
Ad Loading...
two men shaking hands in front of cars
Industryby Lauren LawrenceDecember 18, 2025

Sales Forecast Predicts Best Year Since 2019

New-vehicle sales are up from last year but show a slow fourth quarter.

Read More →
Industryby Hannah MitchellDecember 18, 2025

Mileage Manipulation Up

A new study finds more tampered odometers than usual in inflated market.

Read More →
IndustryDecember 17, 2025

Beginning the Year Right

Help your dealer clients apply these 2026 tax strategies for their business wealth.

Read More →
Ad Loading...
Industryby Hannah MitchellDecember 17, 2025

Autos Take Flying Safety Colors

Twelve brands are awarded for protective features while others fail to place.

Read More →