Ford, Hyundai and Kia Post Massive EV Sales Declines as Tax Credit Ends
Ford, Hyundai and Kia all reported steep drops in electric vehicle sales for November 2025 as the federal EV tax credit expired, pulling forward demand into October.
Ford, Hyundai and Kia all reported steep drops in electric vehicle sales for November 2025, as the expiry of the federal EV tax credit at the end of September appears to have significantly pulled forward demand into the final month of the credit’s availability.
The Numbers
Ford’s battery-electric vehicle sales dropped 61 percent year-over-year in November, with total BEV volumes at just 4,247 units. The F-150 Lightning — Ford’s flagship electric pickup — saw an especially brutal 72 percent decline compared to November 2024. The Mustang Mach-E also fell sharply, contributing to what Ford described as a “reset” in EV demand following the credit’s expiration.
Hyundai and Kia, whose IONIQ 5 and EV6 had been among the fastest-growing EVs in the U.S., also posted large year-over-year declines. Both brands had encouraged buyers to purchase before the credit ended, effectivelyborrowing heavily from future sales.
Why the Drop Was Expected
The federal EV tax credit of up to $7,500 had been a major driver of EV affordability, particularly for models like the Ford F-150 Lightning (starting above $55,000) and the Hyundai IONIQ 5 (starting around $41,000). With the credit no longer available for most of these models — and with no successor policy in place — the market pulled forward purchases into September, leaving October and November looking artificially weak.
Cox Automotive had forecast an 8 percent decline in overall new-vehicle sales for November, with EVs bearing the brunt. The firm estimated total new EV sales of roughly 70,000 units for the month, down more than 40 percent from a year earlier.
Industry Response
Several automakers, including GM and Ford, moved quickly to offer factory incentives to offset the lost tax credit. However, those programs have limits — Ford has been losing an estimated $35,000 per EV sold, according to some internal analysis, making aggressive price-cutting unsustainable.
“We’re in a period of transition,” said Ford CFO John Lawler on an October earnings call. “The credit expiry creates a near-term headwind, but the fundamentals of EVs — lower fueling cost, lower maintenance — still make the math work for many buyers.”
Hyundai and Kia have pointed to their upcoming IONIQ 9 and EV9 GT-Line as key models to reignite interest in 2026, with expanded battery options and faster charging.
What This Means for the Market
November’s EV sales figures represent a sharp correction rather than a fundamental collapse in demand. Analysts note that the U.S. EV market had been growing steadily through 2024 and into mid-2025, with the credit expiration acting as a temporary shock. Whether demand recovers in early 2026 will depend heavily on whether automakers bring more affordable models to market — GM’s next-generation Chevrolet Bolt, expected to start under $30,000, is one of the most anticipated entries.
The broader market context also matters: average new-vehicle transaction prices remain near historic highs above $48,000, and interest rates — though beginning to fall — still make financing expensive. Both factors weigh on EV adoption, which skews toward higher-income buyers who are more sensitive to upfront cost than ongoing fuel savings.
This article is part of Motorlinks’ ongoing coverage of EV market trends. For the latest EV sales data and analysis, bookmark our EV market section.
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