agent Entrepreneur logo
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.

Ad Loading...

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.

Ad Loading...

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

 

 

 

 

 

 

 

 

 

Originally posted on Auto Dealer Today

More Industry

Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →
Ad Loading...
Photo of a loan contract on a desk
Industryby Hannah MitchellMay 13, 2026

Auto Lenders, Consumers on a Tightrope

April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.

Read More →
Shifting Loan Demands A Sign of the Times, Loan Application paperwork with a pen and a car outline, Auto Dealer Today
Industryby Lauren LawrenceMay 8, 2026

Auto Loan Outlook Shows Cracks

Recent survey data shows that the overall demand for auto loans is down, but the demand for subprime loans is up as consumers face economic uncertainty and affordability pressures.

Read More →
Photo of buyer and seller representatives in Waco Mitsubishi sale outside the dealership
Industryby Hannah MitchellMay 7, 2026

Lone Star State Store Sells

The Mitsubishi location moves from one Texas automotive group to another, continuing this year’s spate of brisk buy-sell activity.

Read More →
Ad Loading...
2026 Mitsubishi Outlander in front of the company’s first national Gallery dealer facility
Industryby Lauren LawrenceMay 7, 2026

Mitsubishi Gallery Makes Progress

As part of its 2030 business plan, Mitsubishi's North America arm will soon open its first 'gallery' store in Tennessee, where customers can learn about the brand, vehicles and technology.

Read More →
hand signing paperwork on a clipboard on top of a desk with a gavel to the side

Senators Propose Chinese Connected Car Ban

Just weeks before President Trump is set to meet with the Chinese president, two U.S. senators proposed a bill with the aim of protecting Americans’ data.

Read More →
Photo of work team at a U.S. Subaru hybrid vehicle plant
Industryby Hannah MitchellApril 30, 2026

Consumers Gravitate to Hybrids

A study of Q1 used-vehicle sales shows many consumers are looking to minimize fuel costs but aren’t willing to go all electric and no longer have a tax break incentive to do so.

Read More →
Ad Loading...
family in a car, Affordability Out the Window, Auto Dealer Today
Industryby Lauren LawrenceApril 24, 2026

Bad Credit Tanks Attainability

A recent study suggests expectant parents are feeling the burden of bad credit more than other demographics when it comes to buying a new car.

Read More →