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EVs Slow Down

Forecast sees adoption flattening this year due to anti-EV policies.

February 12, 2025
EVs Slow Down

Despite challenges, EV adoption is still forecast to make up 26% of retail sales by 2030.

Credit:

Pexels/distel APPArath

2 min to read


Steady growth of electric-vehicle sales is forecasted to pause this year as the segment faces challenges from Trump administration policies.

A J.D. Power projection puts 2025 EV sales at a flat 9% of new-vehicle deliveries, or 1.2 million units. It sees the possible end of federal tax credits for EV purchases, trade tariffs, and a still-limited EV charging network as drags on adoption.

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The Trump administration this week suspended a federal program to fund EV charger development across the country. Sparse charging infrastructure has been a major obstacle to mass adoption.

The EV segment will continue to get more sales from mass-market models, according to the forecast. After early adoption centered on premium EVs, mass-market offerings have grown and captured a growing percentage of the segment, from a less than 1% share in 2021 to about 3% last year, when those sold by franchised dealers rose 58% to 376,000 units.

That mass-market EV growth, along with the tax breaks, has helped reverse the cost divide between EVs and gas-powered models, according to J.D. Power, which said the average EV price as 2024 ended was $44,400, $1,000 less than a comparable gas-powered vehicle, which includes hybrids 

The end of the tax credits could change that trend. This week, U.S. automakers asked that federal EV tax credits, which can total $7,500 per EV, be phased out gradually rather than stopped suddenly to help ease the transition, Bloomberg reported.

On a state level, EV adoption has been on the rise in Colorado, Florida and New York, while U.S. leader California actually fell in sales last year by 250 units.     

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Despite challenges, EV adoption is still forecast to make up 26% of retail sales by 2030, J.D. Power predicts.

LEARN MORE: Dealer Survey Finds Anxieties

 

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