auto dealer in black and red 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.

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

Front of large glass-paned, multistory office building
Industryby Hannah MitchellJuly 17, 2026

Toyota Financial Services Adds to HQ

The subsidiary says the new Texas facility is designed to foster collaboration and innovation with the aim of future growth.

Read More →
Tiny toy car falling out of jar of coins. “The $1K Payment”
Industryby Lauren LawrenceJuly 17, 2026

Four-Figure Loan Payments on the Rise

A LendingTree analysis found that location, age and credit score play a role in the rising amount of auto loan borrowers who make monthly payments of $1,000 or more.

Read More →
Auto Dealer Today, Dealer Debrief 07/10/2026, with Lauren Lawrence
Industryby Lauren LawrenceJuly 10, 2026

Dealer Debrief: New-Vehicle Sales Update

In this week's debrief, host Lauren Lawrence discusses the state of new-vehicle sales.

Read More →
Ad Loading...
Handful of colorful crayons.
Industryby Hannah MitchellJuly 10, 2026

Color Your Ride

The first vehicles by startup automaker Slate will come with the option of a medley of wraps in five colors familiar from your childhood.

Read More →
silver SUV, gray floor, yellow wall
Industryby Lauren LawrenceJuly 10, 2026

China Leads Global EV Sales

Globally, electric-vehicle sales are continuing their upward trajectory, buoyed by Chinese exports, as the North American region continues to lag behind.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Ad Loading...
white electric car charging at an outside port
Industryby Lauren LawrenceJuly 2, 2026

Optimized Charging Could Reduce Costs

According to an Alliance for Automotive Innovation analysis, optimized EV charging could cut costs for drivers and improve grid infrastructure - potential adoption incentives.

Read More →
Closeup photo of a new white car on a road from the driver's side
Industryby Hannah MitchellJune 26, 2026

June Automotive Boon?

A forecast for this month’s new-vehicle sales tells a familiar 2026 story: Year-over-year comparisons must be made in light of last year’s aberrations.

Read More →
Seatbelt clip on infographic.
Industryby Lauren LawrenceJune 26, 2026

Safety Improvements Save Lives

Over the past 30 years, automakers have made many safety tweaks to their vehicles. An insurance industry testing group says that's largely thanks to its crash-worthiness program and that prevented fatalities are the clear result.

Read More →
Ad Loading...
Photo of three Chrysler Pacifica minivans, one each red, white and blue
Industryby Hannah MitchellJune 19, 2026

Indiana Dealership Changes Hands

The Chicago-area CDJR store has been in business for nearly 70 years and is now part of a fast-growing automotive group spread across six states.

Read More →