EV Sales Plummet Without Tax Credit Support

In recent months, electric vehicle (EV) sales in the U.S. have experienced a significant decline. Analysts predicted this downturn following the end of EV tax credits. The temporary boost in sales before the subsidy’s expiration has been followed by a considerable drop-off in customer interest.

Impact of Ending EV Tax Credits on Sales

Without the financial incentives, many automakers are reporting a dramatic reduction in EV sales. Even with some companies offering their own promotions, the overall demand remains depressed. The full effect of this trend may not be fully clear until January when more comprehensive sales figures become available.

Sales Performance by Brand

Here is a breakdown of how various automakers have fared:

• Hyundai: The Ioniq 5 witnessed a staggering 60% sales drop compared to last year. Despite this, total sales for 2025 show an increase of nearly 25%. The Ioniq 6 also struggled, with October sales down 52% and year-to-date sales down 4%. Hyundai has sold fewer than 10,000 Ioniq 6 sedans this year.
• Kia: The EV6 saw a two-thirds drop in sales from October last year. Overall, sales for the EV6 have decreased by a third in 2025. The Niro, classified as a smaller crossover, experienced a 75% sales increase last month, although it still faces a sales deficit for the year.
• Honda: The Prologue model suffered an 80% sales drop, totaling just over 800 units in October. The Acura ZDX, previously available, recorded only 25 sales, down from 1,200 a year earlier.
• Subaru: Initially on track to sell over 10,000 Solterras for 2024, Subaru’s sales plummeted with only 13 units sold in October.

Future Outlook for EV Sales

The current state of EV sales could be described as alarming. Many analysts expect these numbers to improve as the market stabilizes. However, it is unclear whether a quick rebound is possible, especially with previous pent-up demand already satisfied through discounted sales.

Automakers may shift focus toward more profitable internal combustion engine (ICE) vehicles to offset losses associated with EV sales. There may be opportunities for consumers to benefit from dealership negotiations on remaining EV inventory.

As the situation evolves, El-Balad will continue to monitor developments in the electric vehicle market closely.