How the US got left behind in the global electric car race

You can be forgiven because you think electric cars can finally gain momentum in the USA.

As a result, sales of battery cars exceeded 1.2 million last year, just four years ago more than five times the number. Hybrid sales increased three times.

According to S&P Global Mobal, battery -powered cars made up 10% of the total sales in August – a new high.

And this week, General Motors, Ford, Tesla, and all other companies reported record sales in the last three months.

This was still a bright point with an industrial wrestling with high interest rates and sprinkler of buyers on inflation, tariffs and wider economy.

However, analysts say the explosion causes the explosion to buy a line before the end of a government subsidy that helps to fall at more than $ 7,500 (£ 5.588) Some battery electric, plug -in hybrid or fuel cell tools.

This tax loan is increasingly waiting for the acceleration of automobile manufacturers from the end of September.

“This will be a living industry, but it will be smaller, much smaller than we think,” Ford CEO Jim Farley said in an event on Tuesday. He said.

General Motors’ Chief Finance Officer Paul Jacobson said at a conference last month to see how fast the buyers will return, “I hope that the demand for home will fall quite quickly.” He said.

Even with the latest gains, the US, the second largest automobile market in the world, was a Laggard in electric car sales compared to the rest of the world.

For example, in the UK, according to the International Energy Agency (IEA), battery Electric and Hybrid automobile sales constituted approximately 30% of new sales last year, while in Europe, about five sales.

According to IEA, in China, the world’s largest automobile market, sales of such cars were almost half of the total sales last year, and this year is expected to be a majority.

In some other countries such as Norway and Nepal, purchase is even greater.

Electric vehicles (homes) tend to create a smaller share of sales in Latin America, Africa and other parts of Asia – but growth is increasing.

Analysts say that adoption in the United States has slowed down with relatively weak government support for the sector that limits subsidies, swap programs and rules that help the industry in places such as China, England and Europe.

Former President Joe Biden forced to increase the purchase and the target For electric cars to explain half of all sales in the United States by 2030.

The management tightened the rules on emissions, increased the demand for state fleets through purchases, investing for credit and grant investments for home investments, building charging stations and expanding a tax loan of $ 7,500 as a sweetener for buyers.

Supporters used these efforts in part as a competitive necessity, he said that these US car manufacturers would face the risk of losing opponents from China and other countries.

However, President Donald Trump, who recently called climate change “Con work”, forced most of these measures, including $ 7,500 loans, to scrape and argued that they have pushed people to buy cars otherwise.

“We say … You will not be forced to make all these cars,” he said this summer, while signing a bill aiming to hit the rules from California, Only gasoline automobile sales are gradually In the state until 2035.

Electric cars have become more affordable in the USA in recent years – but they are still more expensive than comparable gasoline -powered vehicles.

And thanks to low prices, Chinese automobile manufacturers, such as BYD, who are rapidly advancing in other markets, were effectively closed from the USA due to high tariffs in China and targeting cars supported by Trump.

As of August, the average transaction price of an electric car in the US, which is about 16% higher than the average of all cars, was more than $ 57,000, compared to August, August.

The cheapest battery car offered, a Nissan Leaf, about $ 30,000 (£ 22,000). Compared, there may be several models below £ 20,000 in the UK.

Analysts say what the buyers later do, not only with the end of the tax loan, but also in the coming months because Trump has competed with foreign cars and tariffs on some automobile parts this spring.

Hyundai said that this week, Ioniq houses will balance the price of the tax loan by lowering the price of the range. However, Tesla said that the cost of monthly rent payments of some cars will increase.

S&P Global Mobal Director Stephanie Brinley, given the pressures from the tariffs, said that many companies did not expect to see that Hyundai follows the example of Hyundai.

While some buyers can still prefer the houses, “next year will be difficult,” he warned, the company’s total automobile sales in 2026 said that the demand for about 2%.

He continued: “It would be difficult enough if there were new tariffs you had to deal with alone, but there are two effects with the disappearance of new tariffs and the incentive.”

Automobile manufacturers have already taken back their investments in electric cars.

Researchers say Trump’s policy changes can further reduce these investments.

“There is no silence around the home industry – there is no silence around,” American Security Project Research Analyst Katherine said. He said.

“Subsidies were initially a way of balancing the playground, and now the US has a lot of ground to compensate for them to compensate.”

However, Ms. Brinley said she was hesitant to leave the US behind in a industry that tested technology alternatives.

” [electric] Is it really the right thing? “He said.” Saying that we’re behind it assumes it’s the only and best solution, and I think it’s a little early to say that. “