Ultimately, it’s not terribly surprising that there are local effects around these policy changes. “The question is really how long this decline will last, and how slowly any recovery in the growth will be,” Robbie Andrew, a senior researcher at the CICERO Center for International Climate Research in Norway who collects EV sales data, said in an email.
When I spoke to experts (including Andrew) for a story last year, several told me that Germany’s subsidies were ending too soon, and that they were concerned about what cutting off support early would mean for the long-term prospects of the technology in the country. And Germany was much further along than the US, with EVs making up 20% of new vehicle sales—twice the American proportion.
EV growth did see a longer-term backslide in Germany after the end of the subsidies. Battery-electric vehicles made up 13.5% of new registrations in 2024, down from 18.5% the year before, and the UK also passed Germany to become Europe’s largest EV market.
Things have improved this year, with sales in the first half beating records set in 2023. But growth would need to pick up significantly for Germany to reach its goal of getting 15 million battery-electric vehicles registered in the country by 2030. As of January 2025, that number was just 1.65 million.
According to early projections, the end of tax credits in the US could significantly slow progress on EVs and, by extension, on cutting emissions. Sales of battery-electric vehicles could be about 40% lower in 2030 without the credits than what we’d see with them, according to one analysis by Princeton University’s Zero Lab.
Some US states still have their own incentive programs for people looking to buy electric vehicles. But without federal support, the US is likely to continue lagging behind global EV leaders like China.
As Andrew put it: “From a climate perspective, with road transport responsible for almost a quarter of US total emissions, leaving the low-hanging fruit on the tree is a significant setback.”
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