Automakers Are Desperate To Stop EV Sales From Crashing

Hyundai’s new $11,000 incentive is just one sign of how far automakers are going to keep EV sales from collapsing

                                        https://www.carscoops.com/author/bradcarscoops-com/                                    

Electric vehicle shoppers are waking up to a new reality. With the federal EV tax credit now gone, many models have effectively become $7,500 more expensive overnight, whether bought outright or through the once-reliable lease loophole.

Read: Tesla’s Standard EVs Don’t Even Have A Radio, But Will You Care?

To soften the blow, several manufacturers are getting inventive, introducing aggressive discounts, cheaper trims, and in some cases, cutting slow-selling models altogether.

The end of the tax credit on September 30 led to a significant surge in EV sales across the United States; however, sales are expected to decline through the final quarter of the year. In a bid to try and prop up demand, Hyundai is offering a cash incentive worth up to $11,000 on the 2025 Ioniq 5.

Automakers Get Creative

Both General Motors and Ford have also been looking for ways to encourage shoppers to pick up the keys to one of their models.

For example, GM had been working on a plan for its lending arm to initiate the purchase of EVs at dealership lots and then apply for the $7,500 federal credit, rolling this money into lease terms for customers. However, it recently scrapped these plans, reports Reuters.

Nevertheless, it shows how creative some firms are getting to try and ensure EV sales don’t fall off a cliff. This week, Tesla also introduced lower-priced versions of the Model 3 and Model Y.

While both of these models were in the works before the Trump administration confirmed that the credit would be axed, they may help to convince some shoppers to buy an EV who would have otherwise been priced out of the market.

According to Ivan Drury, director of insights at Edmunds, automakers are taking varied approaches to a common problem.

“The overarching message of tax credits going away for EVs has had a very different set of approaches from each automaker,” he told Business Insider. “Which approach will be most successful? Debatable. Nobody’s looking to increase. That’s cuckoo talk at this point. You just want to maintain that basic level of sustainable sales, and this is the different methodologies that each of them have taken.”

Some brands have decided that cutting losses may be the most practical move. Both Stellantis and Acura have opted to discontinue certain EV models altogether. Acura recently confirmed it will pull the plug on its all-electric ZDX SUV, while Stellantis has shelved plans for the RAM 1500 REV.

It’s yet another reminder that even in an age of electrification, not every experiment makes it through the market’s growing pains.