August ’25 Market Pulse

EV Market Overview

The global electric vehicle (EV) market is showing mixed signals as it continues to evolve amid shifting consumer behavior, trade policies, and regulatory environments. Tesla’s sales of China-made EVs fell by 8.4% in July compared to last year, attributed to intense competition from local brands like BYD offering lower-priced alternatives. This decline underscores ongoing challenges faced by major automakers in the highly competitive Chinese market (Reuters, 2025).

In the U.S., significant policy changes have created uncertainty in the EV sector. President Trump’s administration recently introduced major cuts to federal support, prematurely ending substantial tax credits ($7,500 for new EVs and $4,000 for used models) and rolling back infrastructure spending through the National Electric Vehicle Infrastructure (NEVI) program. These policy shifts are expected to slow down EV market growth in the short term, although long-term prospects remain positive due to ongoing manufacturer investments and the global nature of the automotive industry (Ford, 2025).

Conversely, Europe’s EV market outlook remains optimistic, bolstered by tighter EU emissions regulations, decreasing lithium prices, and continued government incentives. European EV sales are projected to grow significantly in 2025, potentially reaching a market share of 25.3%. Notably, the UK government introduced new purchase incentives of up to £3,750 (€4,331) for sustainable BEVs, alongside a £63 million investment to expand charging infrastructure. This has sparked renewed consumer interest, leading to increased prices and higher demand for used EVs in markets such as the UK (Autovista24, 2025) (Seymour, 2025).

These dynamics highlight a complex but resilient EV market, with regional variations influenced heavily by local policies and market conditions.

Electrified Transportation in the News

Momentum on infrastructure and model strategy accelerated over the summer. In mid‑July, the UK government unveiled a £63 million package aimed at “charging up Britain’s economy” by extending low‑cost at‑home charging to households without driveways, electrifying more than 200 NHS sites, and funding depot installations for freight operators (Alexander, 2025). With more than 82,000 public chargepoints already online, one added every 30 minutes, the initiative underscores Westminster’s determination to make EV savings tangible for families and the public sector alike.

Legacy automakers are also repositioning. Ford will pull the wraps off what CEO Jim Farley calls a modern‑day “Model T moment” on August 11: a low‑cost skateboard platform, developed by an ex‑Tesla skunk‑works team, that will underpin a mid‑size electric pickup and several body styles aimed at a sub‑$30 k price point. The gambit comes after a $1.3 billion second‑quarter loss in Ford’s EV division and is designed to spark fresh demand before rivals such as Tesla’s trimmed‑down Model Y and GM’s reborn Chevy Bolt reach showrooms (O’Kane, 2025).

Mercedes‑Benz is pausing U.S. imports of its EQ‑branded EVs and discounting existing inventory after net profit fell 56 % year‑on‑year and pure‑battery models made up just 7.7 % of sales. The German marque points to new U.S. tariffs and the imminent sunset of federal incentives as short‑term headwinds, yet insists that battery‑electric adoption will “creep upwards” over time; a new all‑electric CLA spearheads its forthcoming product offensive, while EQ prices will be trimmed 4–16 % from 2026 (Green, 2025).

Together, these developments illustrate a sector pushing ahead on infrastructure and affordability even as policy uncertainty tests manufacturers’ resolve.

References:

Alexander, H. (2025, July 13). New £63 million boost for Britain’s electric‑vehicle revolution. UK Department for Transport press release. https://www.gov.uk/government/news/new-63-million-boost-for-britains-electric-vehicle-revolution

Autovista24. (2025, July 18). The Automotive Update: Global and European EV market forecasts and UK BEV incentives. https://autovista24.autovistagroup.com/news/the-automotive-update-global-and-european-ev-market-forecasts-and-uk-bev-incentives/

Ford, N. (2025, July 28). Trump hits brakes on electric‑vehicle growth, for now. Reuters. https://www.reuters.com/business/energy/trump-hits-brakes-electric-vehicle-growth-now-2025-07-28/

Green, M. (2025, August 1). Mercedes‑Benz to pause US deliveries of electric car models after company net profit drops over 50 %. EV Infrastructure News. https://www.evinfrastructurenews.com/supply/mercedes-benz-to-pause-us-deliveries-of-electric-car-models-after-company-net-profit-drops-over-50-

O’Kane, S. (2025, July 31). Ford to reveal more about its new low‑cost electric vehicles on August 11. TechCrunch. https://techcrunch.com/2025/07/31/ford-to-reveal-more-about-its-new-low-cost-electric-vehicles-on-august-11/

Reuters. (2025, August 4). Tesla’s July China‑made EV sales fall 8.4 %. https://www.reuters.com/business/autos-transportation/teslas-july-china-made-ev-sales-fall-84-2025-08-04/

Seymour, T. (2025, July 30). Used EV prices rise as buyer interest surges following Electric Car Grant. AM Online. https://www.am-online.com/news/used-ev-prices-rise-as-buyer-interest-surges-following-electric-car-grant

Writer: 

Noelia García Weidling 
Market Intelligence  
ASPIRE