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Reuters
2 days ago
- Automotive
- Reuters
Trump hits brakes on electric vehicle growth, for now
July 28 - President Trump's One Big Beautiful Bill ends $7,500 tax credits for new electric vehicle purchases on September 30, along with $4,000 for used models, seven years earlier than planned by the Biden administration. Electric vehicle battery production tax credits (PTCs) will end in 2028, four years early, while tighter emissions regulations have been scrapped. However, a $250 road repair charge included in the original bill was dropped by the Senate. This followed Trump's January decision to revoke the Biden administration's mandate for electric vehicles to comprise at least 50% of all new vehicle sales by 2030. The federal government also instructed state officials to halt charging infrastructure expenditure via the $5 billion National Electric Vehicle Infrastructure (NEVI) program. On June 12, Trump also blocked California's electric vehicle sales mandates following lobbying by some automotive manufacturers, including GM and Toyota. The mandates banned the sale of new internal combustion engine (ICE)-only vehicles from 2035 and required that at least 80% of all new vehicle sales be battery electric by then. California Governor Gavin Newsom has said he will legally challenge Trump's repeals. Eleven other states had based their own plans to incentivize electric vehicle adoption on California's policies. Other legal challenges to Trump administration efforts to cut electric vehicle incentives have already had an effect. On June 24, a federal judge issued a preliminary injunction ordering the release of NEVI funding for 14 states led by Democratic governors, although the long-term fate of that financing remains uncertain due to ongoing legal wrangling. NEVI has accelerated the buildout of electric vehicle charging infrastructure, 'particularly by enabling greater density along highway corridors,' said Robert Barrosa, the CEO of Electrify America, which runs a network of around 1,000 electric vehicle charging stations in the United States. Short-term pain Thanks in large part to federal and state subsidies, the electric vehicle market, which consists of battery electric and plug-in hybrid electric vehicles, has seen rapid growth in recent years. Electric vehicle market share increased from 2% of new light-duty vehicle sales in 2020 to 10% in 2024, and the number of models in the U.S. grew from under 20 in 2012 to nearly 130 in 2024, according to data from the International Council on Clean Transportation (ICCT). CHART: Annual US electric vehicle sales, number of available models But Trump's anti-electric vehicle drive will likely slow down the market. After the passing of the One Big Beautiful Bill and introduction of new import tariffs, Rystad forecast that sales of new electric vehicles will account for just 18.75% of the market by 2030, whereas in January it forecast a 24% market share. Despite uncertainty over their implementation, new U.S. import tariffs are likely to increase the average cost of vehicles by between $2,000 and $4,000, roughly the same for gas vehicles and electric models, said Tom Coley, Analyst, Battery Research, Rystad Energy. Trump imposed a 25% tariff on all imported passenger vehicles from April 3 but on July 27 the U.S. and European Union (EU) agreed a trade deal that sets a 15% baseline tariff on imports from the EU, including vehicles. Blanket tariffs on many other countries remain in flux and the Trump administration confirmed a 50% tariff on steel and aluminium imports on June 4. Trump's culling of tax credits will make it harder for people on lower incomes to afford electric vehicles, shrinking the market, David Reichmuth, Senior Scientist, Clean Transportation Program at the Union of Concerned Scientists, told Reuters Events. However, many drivers will still choose electric because they offer lower fuel and maintenance costs, while carmakers are unlikely to exit electrification efforts because they operate in a global marketplace and 'have already poured money into [electric vehicle] manufacturing,' he noted. Join 3,000+ senior decision-makers across energy and finance at Reuters Events Energy LIVE 2025. Ford has committed to invest $50 billion in electric vehicles and battery development through 2026 and General Motors (GM) has pledged $35 billion of investments through 2025. Foreign carmakers including BMW, Volvo, Volkswagen and Mercedes Benz already produce or assemble electric vehicles in the U.S., while Hyundai in March opened a $7.6 billion "Metaplant' in Georgia to manufacture electric vehicles. U.S. legacy automakers will be forced to shift their focus away from profitable gas models in the longer term because Asian and European electric vehicles will become 'increasingly competitive in the U.S. market and threaten the ability of the U.S. auto industry to compete globally,' Dan Bowermaster, Senior Program Manager, Electric Transportation at the Electric Power Research Institute (EPRI), told Reuters Events. From 2019 to 2024, the rate of charging infrastructure deployment grew about 25% annually, reaching 204,000 non-home chargers deployed across the U.S. by the end of 2024, as per ICCT data. Electrify America recorded 16 million charging sessions in 2024, a 50% annual rise, and is expanding its network by 30% this year. For exclusive energy insights, sign up to our newsletter. Charging infrastructure providers who relied on federal incentives are likely to see slower growth, Barrosa told Reuters Events, adding that charging networks that are being built by automakers may be 'less impacted.' Barrosa said that despite some 'noise and volatility' in the short term, the long-term electric vehicle outlook remains 'strong and resilient, bolstered by strong investments and sustained consumer adoption' because of a global shift that 'transcends short-term market fluctuations, political cycles, and economic headwinds.' Impact on power Trump's policies are likely to slow growth in power demand from electric vehicles over the next few years, especially in areas that see slow adoption. While hyperscale data centers are currently driving up energy demand, by 2050, power demand growth from transportation is expected to surpass all other sectors and should therefore be prioritized in grid upgrades, said Bowermaster. CHART: US electricity demand outlook EPRI data shows strong power demand from electric vehicles in major conurbations, including Los Angeles, San Francisco, Seattle, Dallas, Chicago and along a long strip of the northeast, including Washington and New York. Demand is much lower in rural areas, particularly in low population density areas of the west. Electric vehicle power demand generally aligns with adoption rates. New electric vehicle market share in the first four months of 2025 was heavily concentrated in California and Colorado. The highest rate was 35.9% in Santa Clara, California, while in most of North Dakota, South Dakota, Nebraska and Kansas electric vehicles accounted for under 1% of new vehicle sales. Download our exclusive report: Soaring US Power Demand Opens New Paths for Developers. California is a leading state in electric vehicle adoption, with 2.2 million vehicles on its roads, approximately 180,000 public and shared chargers and an estimated 700,000 chargers in private homes. According to a 2024 CEC report, California would need 1.01 million public and shared chargers to support 7.1 million light-duty electric vehicles by 2030. Growing electric vehicle power demand has forced California grid operator CAISO and the California Energy Commission (CEC) to build vehicle demand into their capacity plans, a CAISO spokesperson told Reuters Events. California and the northeast will likely maintain momentum in electric vehicle adoption, while the Midwest and Southeast 'may deprioritize [electric vehicle] infrastructure or rollback [electric vehicle] fleet mandates' because their economies rely heavily on ICE supply chains, Coley told Reuters Events. The Sunbelt and Texas may diverge between strong corporate fleet demand and weaker individual adoption, he added.
Motor 1
11-07-2025
- Automotive
- Motor 1
'Disaster for Me:' Hyundai's Sports Car Boss Mourns The Loss of Gas Hot Hatches
With every gasoline-fueled hot hatch that bites the bullet, the world becomes a sadder place. Stricter emissions regulations have largely killed fun cars in Europe , taking away desirable pocket rockets like the i20 N and i30 N. Hyundai's man in charge of the N division is just as disappointed as we are, calling the premature demise of those models a veritable 'disaster.' In an interview with Car Magazine , Joon Park admitted, 'The discontinuation of i20 and i30 N was a disaster for me.' Production of Hyundai N's rivals for the Volkswagen Polo GTI and Golf GTI in the European market ended in February. However, the hot hatches are still around in other regions such as Australia, where the two fun cars even received a minor facelift last year. Hyundai i20 N The Vice President and Head of Hyundai N candidly admits he is 'not the person who actually really likes the EV. I've always liked the smell and the sound and all those kinds of race cars.' By contrast, colleague Tyrone Johnson, Managing Director of the Europe Technical Center in Germany, sees things differently: 'I don't understand the idea that performance cars are dying. If you want to go fast, there's nothing better than an EV. I don't understand the nostalgia.' He added that most gas cars were 'miles away – a disappointment' compared to the 5 N and that 'nobody wants manual gearboxes anymore.' A compromise is coming: hybrids. Joon says it'll be a while before electrified hot hatchbacks roam the streets, but it's doable. The odds of seeing a turbocharged 2.0-liter gas engine under the hood are slim, especially in Europe, due to 'current regulation and future regulation.' The smaller 1.6-liter unit at the core of a hybrid powertrain has a better chance of complying with tougher legislation. Hyundai Veloster N (RIP) It's unclear whether these electrified performance cars will retain a manual like the old i20 N and i30 N had, but we're skeptical. Another quirky Veloster N is also highly unlikely, considering production of the second-generation model ended years ago with no replacement in sight. Outside of the hot hatch realm, an Elantra N (aka Avante N in South Korea) with a bigger combustion engine has already been confirmed , just not for Europe, obviously. As for crossovers, there's no word about Hyundai doing another Kona N, either with a gas engine or as a fully electric model. While the focus appears to be on hot EVs like the Ioniq 5 N and the new Ioniq 6 N , Joon assures traditionalists that 'we [Hyundai N] are not limiting ourselves to EVs.' The future may mostly belong to sporty cars without combustion engines, but ICE will survive in some capacity. Catch Up With The Elantra N: Hyundai Elantra N Sales Are Up Nearly 300 Percent This Year Hyundai Slaps a Big Wing on the Elantra N Source: Car Magazine Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
Auto Car
10-07-2025
- Automotive
- Auto Car
Volvo XC60 review: popular family SUV nipped and tucked to stave off retirement
Verdict Good Comfortable ride Practical interior Motorway refinement Bad A bit staid to drive B5 mild-hybrid petrol won't be particularly economical PHEVs could suffer under the latest European emissions regime Touchscreen infotainment system is still complicated and distracting In many areas, the Volvo XC60 has aged very gracefully, and it is still quite competitive in several key areas. It looks great on the outside and its interior can just about keep up in some areas with more modern rivals while also maintaining impressive levels of comfort and practicality. Ride improvements made throughout its life are apparent, so you could say that XC60 has found its place as a comfortable car that doesn't over-excite its driver, rather cosseting them. Yet the engine range is beginning to let this car down and may yet do so rather more seriously. The clock is now ticking for the XC60. This was Europe's best-selling PHEV in 2024, and right now it continues to have plenty of laid-back, rational appeal. But 'more of the same' will only take this car so far. Unless Volvo is keeping back a meaningful update for its hybrid system, it'll likely lose a lot of its on-paper allure when the time for mandatory homologation under stricter Euro 6e-bis emissions regulations comes. While its rivals get younger and younger, then, and better prepared for the next era of emissions compliance, Volvo's popularity champion could start to look very old very quickly. It may always be a sound, mature choice but perhaps not such a smart one as once it was. Model tested: Volvo XC60 T8 AWD Plug-in Hybrid Ultra Price as tested: Unspecified Engine: 4 cyls in line, 1969cc, turbocharged, petrol, plus 144bhp AC synchronous electric motor Transmission: 8-spd automatic Driveline layout: Front, transverse 4WD via electric rear-axle drive Model tested Volvo XC60 T8 AWD Plug-in Hybrid Ultra Price as tested Unspecified View all specs and rivals Engine 4 cyls in line, 1969cc, turbocharged, petrol, plus 144bhp AC synchronous electric motor Transmission 8-spd automatic Driveline layout Front, transverse 4WD via electric rear-axle drive Top speed 112mph (governed) Battery size 18.8/14.7kWh (nominal/usable capacity) Fuel economy 201.8-313.9mpg Electric range 41-50 miles (EAER) BIK tax band 9% (Euro 6e-bis homologation tbc) Rivals Audi Q5 BMW X3 Mercedes-Benz GLC Top speed 112mph (governed) Battery size 18.8/14.7kWh (nominal/usable capacity) Fuel economy 201.8-313.9mpg Electric range 41-50 miles (EAER) BIK tax band 9% (Euro 6e-bis homologation tbc) Rivals Audi Q5 BMW X3 Mercedes-Benz GLC
Motor 1
11-06-2025
- Automotive
- Motor 1
Kia Blames Regulations For The Death of Gas Performance Cars
We recently mourned the loss of fun gas-powered cars in Europe due to tightening emissions regulations. But the situation is actually much worse. The gradual demise of performance vehicles with combustion engines is happening worldwide. Kia is the latest automaker to announce that its future sports cars will be purely electric to meet stricter legislation. Kia Australia's product chief, Roland Rivero, told Carsales that automakers have no choice but to 'satisfy the global situation and CO 2 regulations are tightening all around the world.' If there is a silver lining in all of this, it's that the GT badge will live on for more electric models. The new EV4 is a prime candidate to receive the electric GT treatment. Rivero remains optimistic about catering to enthusiasts, even in an increasingly electrified era. He believes 'there's no reason why an electrified product can't give you a similar experience [to internal combustion performance cars], albeit with some computer tech and whatnot.' Still, another car like the Stinger GT with its V-6 engine isn't going to happen. The GT badge is already appearing on electric models, such as the supersized EV9 GT . Meanwhile, the smaller EV6 GT recently received an update that includes simulated gear shifts and engine sounds , "features" that tie into Rivero's 'computer tech' comment. Hyundai's N division may have axed the i20 N and i30 N hot hatches, the Kona N crossover, and the quirky Veloster N, but it's not ready to abandon internal combustion just yet. The company still sells the Elantra N and has pledged to launch a next-generation model with a bigger engine . Earlier this year, N division co-founder Joonwoo Park hinted in an Auto Express interview that hybrid powertrains could help keep fun ICE cars alive under the N badge. Addressing the elephant in the room, any hybrid or EV with performance chops will come with a weight penalty. This is especially true for fully electric performance cars, but it's a compromise carmakers seem willing to accept. Hyundai and Kia appear to be leaning into SUVs for now, which only exacerbates the situation. But that's the reality of 2025. Consumers want SUVs, and governments want automakers to reduce the emissions of their fleets. To satisfy both demands and stay in business, car companies are producing more electric SUVs. A few of these receive upgrades to earn their GT and N badges, which were exclusive to combustion-engine cars not long ago. Hyundai's luxury brand Genesis does have a new twin-turbo V-8 , but it's intended solely for race cars. Source: Carsales Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )
