U.S. electric vehicle registrations fell sharply, down 41 percent, a sign of a market reset after Congress repealed the federal EV tax credit last year, according to Tom Libby at S&P Global Mobility. The decline reflects wider challenges across the EV sector as automakers absorb heavy costs to rework strategies.
Manufacturers are taking large financial hits. Honda has cancelled three upcoming U.S.-built EVs, and cut Prologue production in half, with expected sales of just 17,900 units. The moves extend to the Zero Series SUV, the Zero Series saloon, and the Acura RSX, with the company citing weak demand, tariffs, and profitability concerns. Honda is shifting emphasis back toward hybrids, and it has booked up to $15.8 billion in losses tied to its EV push. That figure forms part of an industry-wide restructuring bill that is approaching $70 billion.
Despite the downturn in EV sales, some dealers remain upbeat about near-term prospects for internal combustion products. Stellantis dealers point to a slate of new and refreshed gas-powered models that they expect will keep customers returning. Key items they highlighted include:
– Performance trucks from Dodge
– A refreshed Charger in two-door and four-door configurations
– The Pacifica minivan now available for order
– Ram ProMaster City returning to the lineup
– An all-new Jeep Grand Cherokee and Grand Wagon
– Upcoming refreshes for the Gladiator and Wrangler
– The return of the Jeep Cherokee
Dealers add that recent MSRP adjustments on several Jeep models over the last six to 12 months have helped improve affordability for buyers.
Not every EV maker has the same runway. Rivian has delayed its promised R2 model, choosing to launch first with a version priced around $58,000 instead of the originally touted $45,000 entry point. That product is widely viewed as critical for Rivian, which faces weak sales of its current models and continued heavy losses.
Chevrolet has also raised questions about scale, with limited-run EV offerings that observers say may not point to a clear path to larger volume production.
Taken together, these developments show that EV adoption is not returning to its previous growth trajectory. Automakers are spending heavily to realign portfolios, and many are shifting resources back to hybrids and traditional powertrains as policy changes and consumer hesitancy reshape the market.
Source: https://www.youtube.com/watch?v=iPG0hW0K7LA
