Global sales of electric and plug-in hybrid vehicles surged 24 per cent in June compared to the same period last year, reflecting strong momentum in China and Europe, according to market research firm Rho Motion. However, US sales experienced a slight decline, down 1 per cent, and experts suggest that the US market could face challenges in the latter half of 2025. June saw a dramatic rise in global electric vehicle (EV) sales, with 1.8 million units sold globally. The growth was largely driven by strong demand in China, where sales jumped 28 per cent to 1.11 million vehicles. Europe also saw impressive growth, with sales increasing 23 per cent to about 390,000 units.The rest of the world, including emerging markets, experienced a 43 per cent increase, outpacing North America for the first time. However, North American sales fell by 9 per cent, with the US specifically reporting a slight dip in sales. The increase in global sales is seen as part of the ongoing shift to electric mobility, particularly in regions where government incentives, growing EV infrastructure, and increased availability of affordable electric cars are boosting consumer confidence. In China, while some cities have run out of subsidies, the government is expected to introduce more incentives in the second half of the year, potentially leading to a surge in sales as the year progresses.<h2>US EV market faces challenges ahead</h2>Despite strong global performance, the outlook for the US EV market remains uncertain. A combination of factors, including reduced government-backed tax incentives and rising economic pressures, has led to a slower-than-expected adoption of EVs in the US.According to Cox Automotive, EV sales in the US saw a decline of 6.3 per cent year-over-year in Q2 2025. The total number of new EVs sold in the US during this period was 310,839, down from 331,853 in the same quarter last year. Although sales were up 4.9 per cent compared to Q1, the decline in Q2 is seen as a sign of a more mature market, where growth may ebb and flow depending on consumer demand and government incentives.In addition to the fading tax incentives for new EV purchases—set to phase out in October—Cox Automotive forecasts that the second half of 2025 will likely see a slowdown, especially in Q4, when the full impact of the incentive cuts will be felt. The shift in government policy, combined with rising inflation and supply chain constraints, is expected to test consumer appetite for EVs.<h2>Q3 Outlook: A critical period for US EV market</h2>Looking ahead to the third quarter, Cox Automotive predicts that the US EV market will experience a short-term boost due to a rush to purchase before the phase-out of federal tax incentives. However, this growth is expected to be temporary, and the market will likely face significant challenges in Q4. “The second half of the year will be a critical test of EV demand,” said Stephanie Valdez Streaty, senior analyst at Cox Automotive.In contrast to the US, the Chinese EV market remains strong, with more than 3 million vehicles sold in the first half of 2025, and exports continuing to grow. The global shift toward electric mobility is clearly underway, but the US market, burdened by policy changes and economic pressures, may struggle to keep pace with other regions. As global automakers adjust to these shifting dynamics, the US EV market’s ability to maintain growth will depend heavily on how quickly manufacturers and consumers can adapt to the new reality.

While the US sales experienced a slight decline, the EV sales growth was largely driven by strong demand in China, where sales jumped 28 per cent to 1.11 million vehicles. Europe also saw impressive growth, with sales increasing 23 per cent to about 390,000 units.

Global sales of electric and plug-in hybrid vehicles surged 24 per cent in June compared to the same period last year, reflecting strong momentum in China and Europe, according to market research firm Rho Motion. However, US sales experienced a slight decline, down 1 per cent, and experts suggest that the US market could face challenges in the latter half of 2025. June saw a dramatic rise in global electric vehicle (EV) sales, with 1.8 million units sold globally. The growth was largely driven by strong demand in China, where sales jumped 28 per cent to 1.11 million vehicles. Europe also saw impressive growth, with sales increasing 23 per cent to about 390,000 units. The rest of the world, including emerging markets, experienced a 43 per cent increase, outpacing North America for the first time. However, North American sales fell by 9 per cent, with the US specifically reporting a slight dip in sales. The increase in global sales is seen as part of the ongoing shift to electric mobility, particularly in regions where government incentives, growing EV infrastructure, and increased availability of affordable electric cars are boosting consumer confidence. In China, while some cities have run out of subsidies, the government is expected to introduce more incentives in the second half of the year, potentially leading to a surge in sales as the year progresses. US EV market faces challenges ahead Despite strong global performance, the outlook for the US EV market remains uncertain. A combination of factors, including reduced government-backed tax incentives and rising economic pressures, has led to a slower-than-expected adoption of EVs in the US. According to Cox Automotive, EV sales in the US saw a decline of 6.3 per cent year-over-year in Q2 2025. The total number of new EVs sold in the US during this period was 310,839, down from 331,853 in the same quarter last year. Although sales were up 4.9 per cent compared to Q1, the decline in Q2 is seen as a sign of a more mature market, where growth may ebb and flow depending on consumer demand and government incentives. In addition to the fading tax incentives for new EV purchases—set to phase out in October—Cox Automotive forecasts that the second half of 2025 will likely see a slowdown, especially in Q4, when the full impact of the incentive cuts will be felt. The shift in government policy, combined with rising inflation and supply chain constraints, is expected to test consumer appetite for EVs. Q3 Outlook: A critical period for US EV market Looking ahead to the third quarter, Cox Automotive predicts that the US EV market will experience a short-term boost due to a rush to purchase before the phase-out of federal tax incentives. However, this growth is expected to be temporary, and the market will likely face significant challenges in Q4. “The second half of the year will be a critical test of EV demand,” said Stephanie Valdez Streaty, senior analyst at Cox Automotive. In contrast to the US, the Chinese EV market remains strong, with more than 3 million vehicles sold in the first half of 2025, and exports continuing to grow. The global shift toward electric mobility is clearly underway, but the US market, burdened by policy changes and economic pressures, may struggle to keep pace with other regions. As global automakers adjust to these shifting dynamics, the US EV market’s ability to maintain growth will depend heavily on how quickly manufacturers and consumers can adapt to the new reality.

While the US sales experienced a slight decline, the EV sales growth was largely driven by strong demand in China, where sales jumped 28 per cent to 1.11 million vehicles. Europe also saw impressive growth, with sales increasing 23 per cent to about 390,000 units.

Global EV sales surge 24% in June, but US market faces headwinds

Ford has announced the reduction of 40,000 jobs, citing high costs and disappointing electric vehicle (EV) sales as key factors. The company aims to streamline operations amid financial pressures.

Ford Blames High Costs and Weak EV Sales For Job Cuts

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The German government's recent decision to introduce significant tax benefits for electric vehicles (EVs) is a strategic move aimed at stimulating sales, promoting environmental sustainability, and supporting the country's automotive industry.&nbsp;

According to the German newspaper Handelsblatt, the federal government's tax reductions are estimated to total EUR 585 million (USD 649 million) in 2025 and could potentially increase to 650 million euros by 2028, when the aid is expected to expire.

Key Tax Incentives:

Enhanced Depreciation for Businesses: One of the most significant tax benefits is the increased depreciation allowance for companies purchasing EVs. This allows businesses to deduct a larger portion of the EV's cost from their taxable income in the first year of ownership, providing immediate financial relief.&nbsp;

As part of the draft approved by Chancellor Olaf Scholz's cabinet on Wednesday, companies would be allowed to deduct up to 40 per cent in the first year and decrease progressively to 6 per cent over the next five years, ensuring a balanced approach to tax incentives.

Preferential Treatment for Company Cars: The government has also extended preferential tax treatment to electric and zero-emission company cars. Employees using these vehicles enjoy significantly lower car taxes compared to those driving traditional fuel-powered vehicles. This incentive is designed to encourage businesses to adopt EVs for their corporate fleets, contributing to a greener transportation landscape.

Increased Eligibility Threshold: To make the tax benefits more accessible, the government has raised the eligibility threshold for preferential tax treatment on company cars. Previously limited to vehicles valued at less than EUR 70,000, the new threshold is now set at EUR 95,000. This expansion allows for a wider range of EV models to qualify for the tax incentives, encouraging greater consumer choice and adoption.

The introduction of these tax breaks comes at a point where the German automotive industry has been facing increasing pressure to transition to electric vehicles. Volkswagen has been facing significant challenges in recent years, including rising costs, a challenging transition to EVs, weak demand from abroad, and declining business attractiveness due to insufficient government response and barriers to free trade. These challenges have led the company to consider closing local production sites in Germany, a move that would potentially lead to job losses, reduced economic activity, and potential disruptions to the supply chain.

While the industry has made strides in developing EV technologies, several challenges remain, including the need to invest heavily in research and development, establish charging infrastructure, and address consumer concerns about range and battery life. 
&nbsp;

The German government's recent decision to introduce significant tax benefits for electric vehicles (EVs) is a strategic move aimed at stimulating sales, promoting environmental sustainability, and supporting the country's automotive industry.

The German government's recent decision to introduce significant tax benefits for electric vehicles (EVs) is a strategic move aimed at stimulating sales, promoting environmental sustainability, and supporting the country's automotive industry. According to the German newspaper Handelsblatt, the federal government's tax reductions are estimated to total EUR 585 million (USD 649 million) in 2025 and could potentially increase to 650 million euros by 2028, when the aid is expected to expire. Key Tax Incentives: Enhanced Depreciation for Businesses: One of the most significant tax benefits is the increased depreciation allowance for companies purchasing EVs. This allows businesses to deduct a larger portion of the EV's cost from their taxable income in the first year of ownership, providing immediate financial relief. As part of the draft approved by Chancellor Olaf Scholz's cabinet on Wednesday, companies would be allowed to deduct up to 40 per cent in the first year and decrease progressively to 6 per cent over the next five years, ensuring a balanced approach to tax incentives. Preferential Treatment for Company Cars: The government has also extended preferential tax treatment to electric and zero-emission company cars. Employees using these vehicles enjoy significantly lower car taxes compared to those driving traditional fuel-powered vehicles. This incentive is designed to encourage businesses to adopt EVs for their corporate fleets, contributing to a greener transportation landscape. Increased Eligibility Threshold: To make the tax benefits more accessible, the government has raised the eligibility threshold for preferential tax treatment on company cars. Previously limited to vehicles valued at less than EUR 70,000, the new threshold is now set at EUR 95,000. This expansion allows for a wider range of EV models to qualify for the tax incentives, encouraging greater consumer choice and adoption. The introduction of these tax breaks comes at a point where the German automotive industry has been facing increasing pressure to transition to electric vehicles. Volkswagen has been facing significant challenges in recent years, including rising costs, a challenging transition to EVs, weak demand from abroad, and declining business attractiveness due to insufficient government response and barriers to free trade. These challenges have led the company to consider closing local production sites in Germany, a move that would potentially lead to job losses, reduced economic activity, and potential disruptions to the supply chain. While the industry has made strides in developing EV technologies, several challenges remain, including the need to invest heavily in research and development, establish charging infrastructure, and address consumer concerns about range and battery life.

Germany offers tax incentives to boost EV sales

Headlines of the hour: - Chinese Naval ships spotted off Alaska - Biden: Most qualified to run for President - Biden's twin gaffes at NATO summit - Netanyahu heckled with 'shame' chants - Nepal: 66 people missing after landslide - India: Yellow alert issued for Mumbai - China leads global EV sales

India: Yellow alert issued from Mumbai | China leads global EV sales

The second quarter of 2024 has brought unexpected relief to the electric vehicle (EV) market, with several automakers reporting better-than-anticipated sales figures. However, the road ahead remains fraught with challenges.

In Q2 2024, key players like General Motors (GM), Rivian, and Toyota posted encouraging EV sales numbers, providing a much-needed boost to investor confidence. While Tesla experienced a smaller-than-expected decline, the overall sentiment turned positive, reflected in the rising share prices of these companies.

Analysts note that high borrowing costs and economic uncertainty have slowed the anticipated growth in EV demand. Many consumers continue to favour gasoline-electric hybrids, prompting EV brands to reduce prices and offer attractive incentives to lure buyers. Despite these efforts, the pressure to cut manufacturing and battery costs persists.

Global EV market dynamics

The International Energy Agency projects global EV sales to reach 16.6 million vehicles in 2024, up from 13.7 million in 2023. China is expected to lead this growth, outpacing other regions. However, analysts caution against over-optimism, noting that recent sales figures alone are insufficient to predict a sustained acceleration in EV sales growth.

Also read:&nbsp;<a href="https://www.wionews.com/autonews/jaguar-land-rover-launches-the-new-defender-octa-at-inr-295-cr-737357">Jaguar Land Rover launches the new Defender OCTA at INR 2.95 cr</a>

General Motors and Toyota report strong gains

General Motors reported a 40% increase in U.S. EV sales in Q2, demonstrating its resilience in the face of market volatility. "We can win as more customers embrace EVs and continue winning if they prefer traditional engine technologies," said Marissa West, GM's North American president.

Toyota, traditionally strong in hybrid vehicle sales, also acknowledged growing EV demand. The automaker plans to begin production of two new EV models in its Kentucky and Indiana plants starting in 2026. "We're hearing positive demand from the marketplace," said Damon Rose, Toyota's vice president of sales.

Rivian, Tesla, and Hyundai: market responses

While Rivian and Hyundai did not immediately respond to requests for comment, Tesla's efforts to stimulate demand have been notable. In China, subsidies and incentives, such as zero-interest loans and no-down-payment options, have helped boost sales. These strategies, alongside similar efforts in the U.S., allowed Tesla to exceed delivery expectations despite a second consecutive quarterly decline.

However, analysts urge caution. "Tesla would need a mammoth second half to match last year's volumes, which is probably unlikely," said Matt Britzman, equity analyst at Hargreaves Lansdown. Tesla has shifted focus to its artificial intelligence projects, including the soon-to-be-unveiled robotaxi product and Optimus humanoid robot, to offset the EV sales slowdown.

Positive catalysts and market sentiment

Despite the market's volatility, EV enthusiasts remain optimistic. "Given how bearish the market was on EVs, especially Tesla, these recent positive developments should lead to a repricing of the EV story on Wall Street," said Thomas Monteiro, an analyst at Investing.com. "It's a multitude of positive catalysts gathered at the right time. The EV proposition, at least for the bigger players, looks much brighter now than it did just two months ago."

Navigating a complex future

The second quarter of 2024 has provided a glimmer of hope for the EV market amidst economic uncertainties and high borrowing costs. While the path to mainstream adoption remains complex, with fluctuations expected, the overall trajectory appears positive. Automakers must continue innovating and adapting to market conditions to sustain growth and meet evolving consumer preferences. The journey towards a fully electric future is underway, but it will require strategic manoeuvring and resilience from industry leaders.

(Inputs from Reuters)

The second quarter of 2024 has brought unexpected relief to the electric vehicle (EV) market, with several automakers reporting better-than-anticipated sales figures.

The second quarter of 2024 has brought unexpected relief to the electric vehicle (EV) market, with several automakers reporting better-than-anticipated sales figures. However, the road ahead remains fraught with challenges. In Q2 2024, key players like General Motors (GM), Rivian, and Toyota posted encouraging EV sales numbers, providing a much-needed boost to investor confidence. While Tesla experienced a smaller-than-expected decline, the overall sentiment turned positive, reflected in the rising share prices of these companies. Analysts note that high borrowing costs and economic uncertainty have slowed the anticipated growth in EV demand. Many consumers continue to favour gasoline-electric hybrids, prompting EV brands to reduce prices and offer attractive incentives to lure buyers. Despite these efforts, the pressure to cut manufacturing and battery costs persists. Global EV market dynamics The International Energy Agency projects global EV sales to reach 16.6 million vehicles in 2024, up from 13.7 million in 2023. China is expected to lead this growth, outpacing other regions. However, analysts caution against over-optimism, noting that recent sales figures alone are insufficient to predict a sustained acceleration in EV sales growth. Also read: Jaguar Land Rover launches the new Defender OCTA at INR 2.95 cr General Motors and Toyota report strong gains General Motors reported a 40% increase in U.S. EV sales in Q2, demonstrating its resilience in the face of market volatility. "We can win as more customers embrace EVs and continue winning if they prefer traditional engine technologies," said Marissa West, GM's North American president. Toyota, traditionally strong in hybrid vehicle sales, also acknowledged growing EV demand. The automaker plans to begin production of two new EV models in its Kentucky and Indiana plants starting in 2026. "We're hearing positive demand from the marketplace," said Damon Rose, Toyota's vice president of sales. Rivian, Tesla, and Hyundai: market responses While Rivian and Hyundai did not immediately respond to requests for comment, Tesla's efforts to stimulate demand have been notable. In China, subsidies and incentives, such as zero-interest loans and no-down-payment options, have helped boost sales. These strategies, alongside similar efforts in the U.S., allowed Tesla to exceed delivery expectations despite a second consecutive quarterly decline. However, analysts urge caution. "Tesla would need a mammoth second half to match last year's volumes, which is probably unlikely," said Matt Britzman, equity analyst at Hargreaves Lansdown. Tesla has shifted focus to its artificial intelligence projects, including the soon-to-be-unveiled robotaxi product and Optimus humanoid robot, to offset the EV sales slowdown. Positive catalysts and market sentiment Despite the market's volatility, EV enthusiasts remain optimistic. "Given how bearish the market was on EVs, especially Tesla, these recent positive developments should lead to a repricing of the EV story on Wall Street," said Thomas Monteiro, an analyst at Investing.com. "It's a multitude of positive catalysts gathered at the right time. The EV proposition, at least for the bigger players, looks much brighter now than it did just two months ago." Navigating a complex future The second quarter of 2024 has provided a glimmer of hope for the EV market amidst economic uncertainties and high borrowing costs. While the path to mainstream adoption remains complex, with fluctuations expected, the overall trajectory appears positive. Automakers must continue innovating and adapting to market conditions to sustain growth and meet evolving consumer preferences. The journey towards a fully electric future is underway, but it will require strategic manoeuvring and resilience from industry leaders. (Inputs from Reuters)

Robust Q2 EV sales inject optimism amidst market challenges

Tesla, one of the most valuable car companies globally but 2022 is turning out to be a nightmare for Tesla. First, Wuhan virus lockdowns in China disrupted supply chains and now Tesla has lost the tag of world's largest electric car maker. Its quarterly sales this year have dropped very high.

Tesla no longer largest EV Manufacturer

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