Overview
- Official customs data show Chinese electric-vehicle exports jumped 87% year over year in November, led by Asia and Europe, with Mexico the top monthly destination and more than 600,000 units headed to Europe in 2025.
- U.S. EV sales fell sharply after federal incentives ended on Sept. 30, with Cox Automotive reporting a 46% drop from Q3 and a 5.7% market share in Q4.
- Policy reversals in Washington included scrapping the $7,500 federal EV tax credit, revoking California’s waiver, rewriting emissions and fuel-economy rules, and eliminating CAFE penalties, reshaping near-term demand.
- Automakers are recalibrating: several full-EV programs were canceled or withdrawn from the U.S. market, hybrid and extended-range models are gaining traction, and hybrids now account for a rising share of sales.
- Despite a softening Chinese market marked by a sustained price war and looming consolidation, global forecasts still point to rapid EV adoption, with lower-cost models slated for 2026–27 and Chinese manufacturers expanding production and exports, including BYD’s Hungary plant ramping in 2026.