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The electric vehicle market looked like a grab bag of trends as industry pressures and market dynamics shift.
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April figures show an electric vehicle market facing several challenges that reflect broader economic trends.
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As April opened, the total supply of new vehicles on dealer lots across the U.S. was down 10%+ and counting with days' supply down to 10.
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Commentary/Analysis: Look for likely higher prices across the broader economy, with the auto market heading into uncharted territory — a rough road indeed.
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Analysis: Experts from Cox Automotive say in the near term, after a short surge in buying, vehicle sales will likely fall amid price increases, and OEMs may eliminate some models if tariffs persist.
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The used car market remains strong. But with off-lease EVs hitting the market, used car prices adjusting, and policy shifts on the horizon, industry players need a new strategy.
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Analysis: The proposed levies would add further price pressure to an auto industry already facing affordability challenges.
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Cox Automotive is forecasting retail used vehicle sales in 2025 to reach 20.1 million, an increase of about 1.2% compared to 2024.
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Commentary: No mainstream automaker will be immune to the pain, which will almost certainly be transferred to buyers through higher prices. The U.S. auto market already has an affordability problem.
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Analysis/Commentary: Billions have already been deployed toward EV manufacturing, and the industry cannot walk away from it, but we need to find a way to do this profitably.
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