Western nations are stepping back from electric vehicle commitments just as Chinese automakers surge ahead in the global market, reported Bloomberg News.
What’s happening?
In a pair of setbacks for the EV industry, the European Commission walked away from its planned prohibition on new gas-powered cars by the mid-2030s. Ford Motor Co. also said it would record charges of $19.5 billion while scaling back its electric vehicle plans.
These moves open the door wider for Chinese manufacturers. Automakers such as BYD and Xiaomi keep building out features like interior tech, automated driving tools, and rapid charging systems.
«It’s really sinking in that the U.S. or E.U. can’t catch up,» said Daniel Kollar, head of the automotive and mobility practice at consultancy Intralink Group.
Analysts at BloombergNEF expect U.S. sales of plug-in vehicles to drop by 30% during the last three months of 2025, reaching their lowest point since 2022. Looking ahead to 2026, they forecast minimal growth as buyers lose access to tax credits from the federal government.
Why is the EV slowdown concerning?
When the U.S. and Europe retreat from EV commitments, it hands a competitive edge to Chinese manufacturers who are already leading in EV production.
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Cost remains the biggest hurdle for drivers thinking about going electric. Chinese automakers hold an advantage here. BYD sells its Dolphin Surf, a battery-powered hatchback, for under €23,000 (around $27,000) across European markets.
«There’s some real inefficiency in terms of European carmakers moving quickly and getting things done, and Chinese automakers going global shines a light on that,» said Colin McKerracher, BloombergNEF’s head of clean transport.
By 2026, China is on track to account for close to two-thirds of worldwide EV sales. Without competitive offerings from Western automakers, buyers across Latin America, Middle Eastern countries, and Asian markets will have fewer options to choose from.
What can be done about the EV slowdown?
If you’re looking to buy a new car, explore electric options. This move helps drive demand and push automakers to stay competitive.
Contact your elected officials and voice support for policies that back clean transportation, including EV tax incentives and charging infrastructure investments.
You can also support local and state-level efforts that promote EV adoption even when federal policies change. Many states continue to offer their own rebates and incentives for electric vehicle purchases.
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