Global EV Market Shifts as Automakers Respond to End of US Tax Credits

In a bold move, Hyundai has significantly reduced prices across its IONIQ 5 lineup, with the 2026 model now starting at just $35,000, representing a price cut of nearly $10,000 compared to the previous year ^[1]. This aggressive pricing strategy comes as a direct response to the expiration of federal tax incentives, with every trim level seeing major price reductions while adding new features ^[2].

Several other manufacturers are taking similar actions to maintain market competitiveness. BMW has launched substantial rebates across its entire EV lineup, offering $7,500 on new electric vehicles and $5,000 on select plug-in hybrids ^[3]. Stellantis brands, including Jeep, Dodge, and Chrysler, will continue to offer incentives equivalent to the expired federal tax credit ^[4].

The impact of these changes varies across manufacturers. Ford is preparing for a potential 50% drop in EV sales following the loss of the federal tax credit ^[5]. Meanwhile, Honda has found success with its electric SUV through aggressive discounting ^[6].

The situation in the United States contrasts sharply with other markets, particularly Italy, where government incentives make some EVs extremely affordable ^[7]. Additionally, Chinese EV manufacturers are positioning themselves to enter the US market with competitive pricing as their primary strategy ^[8].

1. The 2026 Hyundai IONIQ 5 gets a big price cut and now starts at just $35,000
2. Hyundai Slashes 2026 Ioniq 5 Prices by Nearly $10K
3. New BMW EV Buyers Get $7,500 Rebate, $5,000 on Select Plug-In Hybrid
4. Jeep, Dodge, Chrysler vehicles will still qualify for the $7,500 EV credit past the deadline
5. Ford Braces for 50% EV Sales Drop After Loss of $7,500 Tax Credit
6. Honda’s electric SUV is a hit, thanks to steep discounts
7. As U.S. Ends Rebates, Italians Can Pick Up an EV For "Less Than a Bicycle"
8. China’s EV Giants Are Coming for America—And Price Is Their Secret Weapon