Recent policy changes regarding electric vehicle (EV) subsidies have triggered localized impacts in countries like Germany and the United States. Robbie Andrew, a senior researcher at the CICERO Center for International Climate Research in Norway, highlighted concerns regarding the duration of the decline in EV sales and the pace of recovery.
Experts have indicated that Germany’s withdrawal of subsidies may have come too early, potentially jeopardizing the long-term viability of EV technology in the country. As of 2024, EVs accounted for 13.5% of new registrations in Germany, a decline from 18.5% the previous year, while the UK overtook Germany as the largest EV market in Europe. Despite a resurgence in the first half of this year, Germany still faces challenges in meeting its goal of 15 million registered battery-electric vehicles by 2030, having attained only 1.65 million as of January 2025.
In the United States, projections suggest that the expiration of federal tax credits could hinder EV sales and emissions reduction efforts. An analysis from Princeton University’s Zero Lab estimates that EV sales could be nearly 40% lower by 2030 if these credits are eliminated. Although some U.S. states maintain their own incentive programs, the absence of federal support may leave the country trailing behind EV leaders like China.
With nearly a quarter of U.S. emissions attributed to road transport, the removal of incentives may have significant implications for climate goals. The ongoing developments in EV policy and their effects on sales and emissions will continue to be of interest as various countries navigate their energy transitions.
Source: https://www.technologyreview.com/2025/10/02/1124603/ev-tax-credits-end-us/