Electric Vehicle Sales Plummet Amid Policy Shifts

U.S. light vehicle sales declined in October due to the expiration of government subsidies for electric vehicles and economic uncertainties like a cooling labor market and potential price hikes from tariffs. The removal of tax credits, alongside economic factors, has dampened consumer demand, affecting auto sales overall.

U.S. light vehicle sales experienced a decline in October following the cessation of federal subsidies, which previously bolstered demand for electric vehicles. The policy change, alongside a slackening labor market and potential tariff-related price increases, poses challenges for the auto industry.

According to Omdia data, sales adjusted for seasonality dropped 6.5% to 15.3 million units, with electric vehicle sales plummeting from 98,289 in September to 74,897. This downturn follows the removal of significant tax credits previously supporting EV purchases, drawing attention to policy impacts on market dynamics.

Experts like Ben Ayers from Nationwide Financial highlight the gloomy near-term outlook for auto sales as uncertainties grip consumers. Additionally, labor market stagnation, exacerbated by undocumented worker raids, and tariff concerns create headwinds, as emphasized by Oxford Economics' Grace Zwemmer. (Reporting By Lucia Mutikani; Editing by Aurora Ellis)

(With inputs from agencies.)