China, Europe Wreck US EV Sales

By Douglas McIntyre  •  October 3, 2025
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Across the US car industry, executives have voiced concerns about the country’s lack of progress in EV sales and adoption. The end of the federal government’s $7,500 tax credit will exacerbate the situation. The most pessimistic voice in the industry is Ford CEO Jim Farley. Ford has invested tens of billions of dollars, but it has seen little return in terms of sales. Farley recently stated that China’s EVs pose an existential threat to the American industry. 

New figures pulled together by Semaforn show how far the US is behind China, the world’s largest EV market, and even the EU. China’s production this year is 12.4 million, with sales at 11.2 million. The EU production figure is 2.4 million, with demand at 2.2 million. The US number is 1.1 million, with demand at 1.6 million. Most forecasts predict that US EV sales will decline as the tax credit is phased out.

China’s EV industry has faced two challenges recently. By one estimate, over 100 brands are competing for buyers. Some of these will disappear as happened in the US between the 1910s and 1940s. Large companies like BYD will continue to prosper, although its sales were down last quarter for the first time since 2020. 

China Sales In US

The second Chinese challenge is that Chinese EVs are sold in China. To be really successful, they need to break into the largest markets, which are the EU and the US. In Europe, sales are partially blocked by tariffs; in the US, they are completely blocked with tariffs of 100%. The US tariff may be what keeps Ford and GM in business in a few years.

Approximately 16 million new cars are sold in the US each year. China wants millions of those. Without tariffs, inexpensive but feature-rich cars will get there, eventually.

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