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U.S. EV Share Falls to About 5% After Credit Ends as Carmakers Pivot to Hybrids, Cheaper Models

Manufacturers counter the subsidy-driven slump with heavier discounts, lease support, plus a shift toward hybrids as well as cheaper EVs.

Overview

  • J.D. Power/GlobalData estimates put October EVs at roughly 5.2% of U.S. retail sales, down from September’s 12.9% record and about 43% lower year over year at roughly 54,700 units.
  • Automakers have raised EV incentives to cushion the loss of the $7,500 credit, with average discounts around $13,161, and dealers report lease workarounds such as boosted residuals via captive finance arms.
  • Volkswagen’s U.S. chief said the brand will emphasize full hybrids to match consumer demand, reflecting a broader industry reassessment of powertrain plans after the policy-driven shock.
  • Executives outlined near-term affordability moves: Lucid says it split the lost-credit cost on the Air and is targeting a lower-priced model next year, while Rivian is offering purchase deals and plans to launch the roughly $45,000 R2 SUV in the first half of next year.
  • Financial and outlook signals are mixed, with GM booking a $1.6 billion EV-related charge even as analysts project a gradual recovery toward the end of the decade, including a Cox forecast of about 24% EV share by 2030.