Major automakers unveil new electric vehicles despite sales downturn

Automakers rolled out new electric vehicles at the New York Auto Show despite a sharp drop in U.S. EV sales after the $7,500 tax credit was scrapped. Rising fuel prices, however, are beginning to revive interest, prompting companies to adjust strategies with cheaper EVs and more hybrids.

Aleksandra Michalska/Reuters

April 02, 2026

Major automakers unveil new electric vehicles despite sales downturn

Subaru of America COO Jeff Walters speaks during the unveiling of the 2027 Subaru Getaway three-row Electric SUV at the New York International Auto Show in New York City, U.S., April 1, 2026.

Jeenah Moon/Reuters

Major automakers unveiled new electric vehicles at the New York Auto Show on Wednesday (April 1), despite lagging consumer demand and a sharp downturn in sales after Washington eliminated a $7,500 EV tax credit.

Kia said it would begin selling its lower-priced EV3 in the United States later this year, while Subaru offered a new three-row EV named the "Getaway" that can seat seven. The Japanese automaker's family EV SUV will go on sale later this year or next year, its fourth EV model in the U.S. market.

Automakers are facing a tougher U.S. EV market, but higher gasoline prices in recent weeks have spurred fresh interest.

GM recently began selling its Chevrolet Bolt EV, which starts at $27,600 after it ended the prior generation in 2023.

The Alliance for Automotive Innovation, a trade group representing GM, Ford, Toyota Motor, ⁠Volkswagen, Hyundai, Stellantis, and other major automakers, said EV sales were 9.6% of all U.S. sales in 2025 but fell to 6.5% in the last three months - the lowest since early 2022 - after the $7,500 EV tax credit expired on September 30.

Christian Meunier, chairman of Nissan Americas, said the U.S. market has dropped substantially.

Hyundai Motor CEO Jose Munoz said that as fuel prices have risen, particularly in California, the company has seen a trend towards increased EV sales, "not driven by regulation, but driven by the market conditions." The automaker has revised its plans to include more hybrid production.

David Christ, general manager of the Toyota Division at Toyota Motor North America, said that the Japanese automaker is introducing three EVs in the U.S. this year, and higher fuel prices would provide a boost.

EVs now account for 2.5% of total light-duty vehicles in operation in the U.S. EV sales accounted for 10.2% of total vehicle sales in 2024.

President Donald Trump has taken a series of steps to disincentivize EV purchases and production and make it easier to produce gas-powered models.

-Aleksandra Michalska/Reuters