EV Prices Plummet Globally, Except in America

Electric vehicles are getting cheaper across most of the world, but the United States is moving in a different direction. A quarter of all new cars sold worldwide are now electric, according to a recent International Energy Agency report. Released on May 20, Global EV Outlook 2026 found that in the U.S., the figure remains stuck at roughly 10%, with the gap between those two trajectories widening considerably in 2025. 

Worldwide, more than 20 million electric cars changed hands in 2025, a 20% jump from the prior year. Battery costs fell 8% as commodity prices remained low and manufacturers increasingly adopted lithium iron phosphate chemistry, which sidesteps expensive metals like cobalt and nickel. 

On the other hand, sales edged down in the United States due to policy rollbacks, large-vehicle preferences, and the absence of affordable Chinese options. Policy drove much of the decline: a 2023 Biden target aimed for 56% electrification by 2032, which the Trump administration scrapped via executive order. 

The One Big Beautiful Bill Act removed fines on automakers that miss fuel efficiency targets, reducing pressure to sell EVs. It also eliminated purchase incentives for electric vehicles and proposed a $250 yearly charge for EV owners. Q4 2025 EV sales were 45% below the prior year, and the IEA projected essentially no federal support for buyers in 2026. 

Chinese EVs face a 100% import tariff in the U.S., effectively shutting out the brands that have driven mass adoption in other markets. Those same brands have captured up to 85% of the EV sector in certain markets across Southeast Asia, Latin America, and Europe. 

Washington has also shut down planned production facilities linked to Chinese battery makers Gotion and CATL, and blocks their software from appearing in internet-connected vehicles. In Indonesia, even locally assembled vehicles largely come from Chinese carmakers with domestic operations. 

Over 85% of the EV models on sale in the U.S. are SUVs or similarly sized vehicles, a higher share than anywhere else in the world. A heavier vehicle requires more battery capacity, which translates into a higher sticker price that prices out mainstream buyers. 

Worldwide, around half of the EV lineup consists of SUVs, while Europe has seen meaningful growth in smaller, cheaper options. Vietnam is a counterexample: EV uptake there surpassed 40% in 2025, driven almost entirely by VinFast’s compact and affordable lineup. 

Canada saw EV market share fall from close to 17% in 2024 to 11% in 2025 after ending a purchase subsidy scheme. North America’s retreat stands against the global trend, where governments have been layering on incentives and affordability increasingly drives adoption. The IEA catalogued a wave of new support schemes introduced across other regions in 2025. 

As the market transitions from early adopters to mainstream consumers, manufacturers in those countries are responding with more affordable models. The onus is now on U.S. EV manufacturers like Lucid Motors (NASDAQ: LCID) to study the viability of smaller, more affordable models and leverage market forces to deepen their reach domestically. 

About GreenCarStocks

GreenCarStocks (“GCS”) is a specialized communications platform with a focus on electric vehicles (“EVs”) and the green energy sector. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled recognition and brand awareness. GCS is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from GreenCarStocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.GreenCarStocks.com

Please see full terms of use and disclaimers on the GreenCarStocks website applicable to all content provided by GCS, wherever published or re-published: https://www.GreenCarStocks.com/Disclaimer

GreenCarStocks
Austin, Texas
www.GreenCarStocks.com
512.354.7000 Office
Editor@GreenCarStocks.com

GreenCarStocks is powered by IBN