Automakers push new EVs in US as demand slows

Automakers used the New York Auto Show to preview new EVs for the US even as demand has cooled after the US$7,500 federal tax credit expired on September 30.

Kia will start selling the EV3 in the US later this year, and Subaru showed a three-row EV called Getaway that it expects to go on sale later this year or next year.

A trade group for major carmakers said EVs were 9.6% of US vehicle sales in 2025 but fell to 6.5% in the past three months, the lowest since early 2022.

Nissan Americas said demand has “disappeared,” while Hyundai and Toyota executives pointed to higher gasoline prices as a near-term boost, and said hybrids will play a bigger role.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Automakers face a sharp shift in U.S. emissions policy, along with softer demand

The end of the federal EV tax credit sits inside a wider rollback of U.S. emissions policy 1. The Environmental Protection Agency (EPA) has finalized a rule that revokes the 2009 Endangerment Finding and ends federal greenhouse-gas emissions standards for vehicles. The agency calls it the largest deregulatory action in U.S. history 2.
The rollback removes a regulatory push toward cleaner vehicles, alongside the Department of Transportation’s fuel-economy Corporate Average Fuel Economy (CAFE) program 1. The administration says the change cuts more than $1.3 trillion in technology costs, or about $2,400 per vehicle 2.
The estimate leaves out benefits such as fuel savings. One EPA scenario puts the policy at a net cost of $180 billion to Americans 3.
With fewer federal constraints, automakers can lean harder on trucks and SUVs. Ford and General Motors (GM) have written down billions in EV assets 4.

A slower EV market splits buyers and creates room for hybrids

After the tax credit ended, EV registrations fell 48% year over year in December 2025 5.
Some automakers are covering the $7,500 gap themselves. Hyundai cut the price of its 2026 Ioniq 5 by up to $9,800 6.
New EV prices stay high, so used models look more appealing. The average price gap between a used EV and a used internal combustion engine (ICE) vehicle shrank to $897 7.
Carmakers are leaning on hybrids as a stopgap. Ford expects about half its global volume to come from hybrids, extended-range vehicles, and EVs by 2030 4.