Global car manufacturers are grappling with a staggering $65 billion (£51 billion) loss as they reassess their electric vehicle (EV) strategies. This shift comes amid a significant downturn in demand, particularly in the United States, where changes in climate policy have altered the landscape. In contrast, the UK market shows a robust increase in EV adoption, despite the introduction of new taxes and regulatory scrutiny.
Major players in the automotive industry have recorded billions in writedowns over the past year. Stellantis, for instance, reported a $26 billion charge following its decision to cancel several fully electric models while reviving its 5.7-litre engine in the US. This move resulted in a loss of around $6 billion in market value. Stellantis had previously set ambitious targets, aiming for EVs to account for all European passenger car sales by 2030 and half of US sales.
Similarly, Ford announced a $19.5 billion writedown after scrapping its electric F-150 pickup, while General Motors posted a $7.6 billion loss tied to its EV operations. Additionally, Honda is forecasting $4.5 billion in annual EV-related losses, which includes $1.9 billion in impairments, as the company reevaluates its strategy and dissolves its US EV partnership with GM. “The EV market is dramatically changing,” said Noriya Kaihara, Honda’s executive vice-president. He indicated that the company would closely monitor sales trends and make further adjustments as necessary.
Industry experts attribute these challenges to the withdrawal of certain US EV credits and emissions measures, leading to expectations that electric vehicles will represent approximately 5 percent of new car sales in the US in the coming years, significantly down from current levels. Stephen Reitman, an analyst at Bernstein, noted that many automakers got swept up in the hype over Tesla’s market valuations without adequately attracting customers, pointing to issues with pricing, range, and charging infrastructure. Michael Tyndall, an analyst at HSBC, echoed these sentiments, cautioning about potential unforeseen costs that could affect cash flow.
UK Market Defies Expectations
In stark contrast, the UK automotive market is experiencing a surge in electric vehicle registrations. According to the Society of Motor Manufacturers and Traders (SMMT), over two million cars were registered in 2025, marking the first time since 2019 that registrations have reached this level. Battery electric vehicles accounted for 23.4 percent of sales, with October 2025 seeing EVs making up 25.4 percent of new registrations, setting new records.
The continued growth in EV adoption is further supported by rental and fleet operators shifting towards electric and low-emission vehicles, aided by clean air zones and favorable company car tax incentives. Despite rising costs, government policy remains supportive of electrification efforts.
Beginning in April 2028, electric car drivers in the UK will be subject to a new mileage-based Electric Vehicle Excise Duty (eVED) of 3 pence per mile, while plug-in hybrid drivers will pay 1.5 pence per mile. For instance, a driver covering 10,000 miles annually would incur a cost of £300 under this new system. Treasury minister Dan Tomlinson stated that this charge “will ensure all car drivers contribute, but will still maintain important incentives to switch to an electric vehicle.”
As global carmakers navigate the complexities of the evolving EV market, the UK appears to be forging ahead, demonstrating resilience and commitment to electrification amidst a challenging landscape.
