U.S. electric vehicle registrations plunged 41 percent, a stark sign that consumer momentum behind EVs has cooled, Automotive News reported in its March 15, 2026 Weekend Drive segment. The decline highlights broader industry stress points: softer demand, squeezed profitability, and looming policy shifts such as possible loss of federal tax credits.
Manufacturers are responding quickly. Honda has cut its EV production target in half and now expects to build just 17,900 EVs this year, while canceling three planned U.S.-built models. The company points to tariffs, weak demand, and financial pressure as the reasons for the pivot, and plans to lean harder on hybrids to stabilize its lineup.
Other automakers have been retreating from aggressive electrification moves as well. Stellantis earlier scrapped plug-in hybrids. Ford is converting its Kentucky battery plant to produce energy storage systems instead of EV batteries, and the company has acknowledged roughly $21 billion in losses tied to its EV push.
Industry executives describe a mood of “uncertainty fatigue,” driven by geopolitical tensions, tariff worries, and expiring incentives, factors that have kept sales volatile into early 2026. That environment is encouraging many OEMs to diversify powertrains rather than place all bets on battery electric vehicles.
Still, dealers say they are optimistic about new internal combustion and hybrid models arriving this year and next. At Hoffman River Oaks CDJR in Houston, sales manager Blake Huffman expressed enthusiasm for a slate of launches that he expects will draw shoppers back to showrooms.
Huffman highlighted several upcoming products: V8 powered Ram trucks, the revived two- and four-door Dodge Charger with standard all-wheel drive in 420 hp RT and 550 hp Scat Pack trims, the refreshed Chrysler Pacifica minivan which is now available for ordering, and the return of the Ram ProMaster City small van after rivals like GM, Nissan, and Ford left the segment. ProMaster City production is set to begin later in 2026, with dealer lots expecting deliveries in the first quarter of 2027 following positive confidential previews.
Jeep is also busy re-entering important SUV segments, with all-new Cherokee, Grand Cherokee, and Grand Wagon models on the way, plus refreshed Gladiator and Wrangler variants due over the next two years. Dealers view those “new metal” offerings as crucial to winning back market share in a changing marketplace.
Many observers say fuel economy and performance-oriented hybrids could gain traction if oil prices spike because of conflicts, for example tensions involving Iran. The current shift away from full-court EV expansion toward a mix of electrified and conventional powertrains shows automakers recalibrating priorities amid economic headwinds.
Source: Automotive News, Weekend Drive, March 15, 2026. https://www.youtube.com/watch?v=iPG0hW0K7LA
