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Prospects for electric car sales look gloomy in the US after president Donald Trump’s government killed purchase incentives and ripped up legislation forcing ca rmakers to improve their average fuel consumption. But does that mean EVs are dead over there?

The recent push by car makers to launch more EVs in the US is definitely going into reverse, believes General Motors. “I would be surprised if there aren't fewer EV retailers or EV sellers in the next four to five years,” its CFO, Paul Jacobson, told the JP Morgan Auto Conference on 13 August.

GM is currently the second largest EV seller in the US, after Tesla, but Jacobson warned investors that it would take the company longer for its EV business to become profitable as demand faded. Meanwhile, the company is “investing pretty heavily in our ICE portfolio,” he said.

American EV demand should be showing a spike ahead of the 30 September ending of the $7500 federal tax credit for new electric cars, and sales were up 4.6% in June, figures from S&P Global Mobility reported by Automotive News show. However, EVs' market share was actually down, at 8.6% in the month compared with 8.8% a year before.

By contrast, in the EU, where car makers are still very much guided by legislation to reduce CO2 emissions, the EV share stood at 16% for the first half of the year, according to figures from lobby group the ACEA, up from 12% in the first six months of 2024.

In the US, EV sales are still dominated by Tesla, which accounted for half of all June sales, despite a drop in numbers in the face of strong growth from the likes of GM, Honda and Jeep, according to the S&P figures.

Tesla now has a problem, however. The company relied on emissions credits for much of its income, but the three months to the end of June showed that such income halved to $439 million.

Trump’s 'Big Beautiful Bill', which reduced the penalties for car makers busting the corporate average fuel economy (CAFE) limits will “impact our total revenues going forward,” said Tesla CFO Vaibhav Taneja on the company’s second-quarter call. 

Essentially it means those selling ICE vehicles now don’t need to worry about buying credits from Tesla or anyone else if they fall short. So Tesla loses twice, the first being the loss of the $7500 government incentive on EVs costing less than $55,000 (or $80,000 for SUVs and pick-up trucks).

Tesla CEO Elon Musk was downbeat on the call. “We're in this weird transition period where we will lose a lot of incentives in the US. We probably could have a few rough quarters,” he said.

Ford meanwhile said it had cut its commitment to purchase EV credits by a whopping $1.5 billion.

Now that the pressure to hit 50% EV sales by 2030 in the US has been removed and California’s ability to set an even tougher goal has been stripped out, car makers such as Ford, GM and Stellantis can focus on more profitable ICE vehicles. 

The imperative to develop and sell more EVs has been removed almost completely. “That was really creating a lot of heavy discounting behavior,” GM’s Jacobson said. “[Car makers] weren't interested in selling EVs as much as they were interested in creating credits that were otherwise going to potentially be short going forward.”

Ford, GM and Stellantis in particular are going back to doing more of what they know best: selling high-displacement pick-ups and SUVs for big profits.

For example, Stellantis under new CEO Antonio Filosa has brought back the Hemi V8 engine for the Ram pick-up, with production starting “very soon” Filosa promised at the end of July.

This came as it delayed its electric and range-extender Ram pick-ups to 2026 and 2027 respectively.

Others are following suit. Honda has reportedly killed a five- and seven-seat electric SUV, while Nissan has axed two electric saloons planned for sale in the country.

This is what Trump  – a long-time critic of EVs and any reduction of CO2 emissions in general – wanted. 

In July, the US Environmental Protection Agency (EPA) proposed to rescind the 2009 Greenhouse Gas Endangerment Finding, which stated that a combination of greenhouse gases “threaten the public health and welfare of current and future generations”. With that cancelled, the EPA would no longer be allowed to regulate the CO2 output of new vehicles. 

One argument the EPA put forward was that “complying requires manufacturers to design and install new and more expensive technologies, thereby increasing the price of new vehicles”.

EVs are more expensive in the US than new cars overall. Price guide Kelly Blue Book calculates the average transaction price (ie with discount) at $57,734 in May, compared with $48,799 for all cars.

However, Trump’s stated desire to lower prices is at odds with the impact of trade tariffs, which is hurting both homegrown and import brands.

“We are still expecting prices to move higher through the summer as the inflationary impact of tariffs begins to hit,” said Erin Keating, analyst at Blue Book parent company Cox Automotive.

While the pressure has been removed to sell EVs of any kind, American car companies realise that electric drivetrains aren't going away. At some point, they will have to make them profitably or lose out to those who can.

“We really see the Chinese companies like Geely and BYD as a competitive set for our next generation of EVs, not the global OEMs,” Ford CEO Jim Farley said on the company’s second-quarter earnings call.

Chinese EVs are as good as banned in the US, due to high tariffs, but few believe that will last forever.

Ford went on to announce a forthcoming range of affordable EVs based on a new Universal EV platform, starting with a mid-size, double-cab pick-up that will arrive in 2027, priced at $30,000 (around £22,000).

Farley described the innovative manufacturing method and reduced complexity as “a Model T moment”, suggesting Ford was once again reinventing car production. 

“We believe the only way to really compete effectively with the Chinese over the globe on EVs is to go and really push ourselves to radically re-engineer and transform our engineering, supply chain and manufacturing process,” Farley said.

Small (or what the US thinks as small) and cheap is the new mantra for future EV success. “The pure EV market in the US seems to us very clear: small vehicles used for commuting and around town,” Farley said.

Lower prices will be driven partly by Ford and GM pushing into cheaper lithium-iron-phosphate (LFP) batteries, which use fewer expensive metals like cobalt.

Amazon-backed start-up Slate has a similar philosophy and is prepping a potential rival for Ford in the £20,000 electric Truck, due in 2026 with wind-up windows and the driver's smartphone standing in for a touchscreen.

The success of GM’s $33,600 Chevrolet Equinox compact electric SUV is showing that buyers will respond if the EV is cheap enough.

Powering EVs is inexpensive in the US, thanks to low electricity prices, and of course they can be charged almost off-grid with enough solar panels to draw from – something that appeals to the American sense of self-sufficiency. 

The current trend for electric golf carts as suburban runabouts in the US suggests that buyers are not innately anti-EV, even outside of EV hotspots like California.

The charging infrastructure for longer journeys could also continue to improve after Trump’s administration backed off its stated plan to cancel a $5bn funding programme to grow a broader network.

Right now, the American car industry is dialling back investment in EVs and pouring more money back into ICE vehicles – but it’s not a dramatic reset, given how much slower the market was in coming round to EVs compared with China or Europe.

“Really, it's a North American issue.” Patrick McCann, CFO of Canadian parts giant Magna, told the JP Morgan conference. “EVs are coming; it's just a matter of when and at what levels."

Volkswagen has released the first official image of the new second-generation T-Roc ahead of its imminent reveal, showcasing the new car's sharply raked roofline.

As previously reported by Autocar, the second-generation T-Roc is due to be unveiled in the coming weeks, ahead of an expected debut at September's Munich motor show – where Volkswagen is also tipped to reveal the ID 2X baby SUV.

It will be the brand's first model to use a new full-hybrid powertrain that is also bound for the Golf and Tiguan. It will work similarly to that used by Toyota, capable of driving the wheels using either a petrol engine, an electric motor or a combination of both at any given time.

Volkswagen has never used such a system in a production car, and its introduction comes less than a decade before the firm will have to go all-electric in Europe - but CEO Thomas Schäfer said the company is "experimenting now because certain regions are gliding into HEVs [hybrid electric vehicles]".

"We needed to do it anyway, because South America has a need for an HEV drivetrain - and the T-Roc is built in South America for South America, and also in China.

"Interestingly enough, HEV has also become a big theme in the US specifically. It's a technology that everybody said was not necessary any more, but now with the BEV slowdown in the US, the balance is [moving towards] HEVs."

After introducing this new system in the Mk2 T-Roc, Schäfer said Volkswagen will "see where it makes sense" elsewhere in the line-up but "we're not going to double everything up; we will have PHEV and HEV models".

It will not be introduced to every car that uses the same MQB architecture as the T-Roc, but it will be added to the Golf and Tiguan in the next two years, a Volkswagen official told Autocar.

When looking for a new job, many drivers consider a company car as a must-have perk. 

Company cars can save employees money, and choosing an electric car brings a great reduction in benefit-in-kind (BIK) tax. 

Business users are taxed on a low percentage of the car's value, which can amount to significant annual tax savings.

For the 2025/2026 tax year, this figure is just 3% for EVs, while petrol and diesel models come in significantly higher – up to 37%, in fact.

In the modern world, EV drivers can also benefit from cheap home charging rates or even charge at the office, should their company offer it. 

There are many excellent electric company car options out there, with models from Volkswagen, Tesla, BMW and MG all proving popular with the British driving public. 

The Volkswagen ID 7 stands out as our premier choice, offering remarkable range, unparalleled comfort and excellent practicality, all at a highly affordable monthly cost.

But which other options should you add to your shortlist? Check out our full list below to find out, including some of the best hatchbacks, SUVs, estate cars and more.

Volkswagen is preparing for one of the most comprehensive product offensives in its 87-year history, with 10 new electric and combustion-engined models due to be launched over the next three years as it reshapes its core line-up.

Against a backdrop of stalled sales, deep cost cuts and workforce layoffs at home, the aim of VW’s reinvention is to propel the German company back to its former strength, profitability and global competitiveness.

At the heart of this renewed push are the ID 1, ID 2 and ID 2X, the new front-wheel-drive, entry-level electric cars that have been conceived as electric successors to the Up, Polo and T-Cross.

Alongside this new trio, the German company will look to bring to market a wider range of electric cars – such as a Golf EV – while upgrading its current crop of combustionengined best-sellers as part of a renewed push for its ICE models.

A new electric entry point

Seen by VW as probably the most vital of all its upcoming models, especially in terms of mass EV adoption, is the ID 1.

Previewed by the ID Every1 concept earlier this year, the new entry-level model has been billed by VW CEO Thomas Schäfer as “the last piece of the puzzle” in the firm’s electric transformation. “This is the car the world has been waiting for,” he said at its unveiling in March.

The production ID 1 is scheduled to hit the road in 2027 and will be priced from £17,000, which will position it as a premium rival to the cheapest EVs currently on sale, such as the £16,000 Leapmotor T03 and £15,000 Dacia Spring.

The arrival of a 3880mm-long, five-door hatchback will also give VW a foot in an increasingly popular market segment that is expected to experience robust growth in future years with the imminent arrival of models from ‘legacy’ brands, such as the Renault Twingo.

Key to the ID 1’s low price is MEB Entry, a new cost-optimised platform developed specifically for compact electric models.

This will be used first by the ID 2, which is set to be fully revealed at the Munich motor show in September.

Unlike the MEB platform used by VW’s existing EVs, MEB Entry features a frontmounted electric motor in a layout designed exclusively to provide compact dimensions, claimed class-leading interior space and a luggage compartment with a lower fl oor and greater capacity than competitors.

The ID 1 will be powered by a newly developed front-mounted electric motor developing 94bhp. It has been conceived to deliver a top speed of 81mph and offer at least 155 miles of range from a lithium-ironphosphate (LFP) battery of around 38kWh in capacity.

It will also feature a relatively simple torsion-beam rear axle (based on that of the current Polo) and be VW’s first model to feature a fundamentally new software architecture, developed through a partnership between VW’s software division, Cariad, and American EV maker Rivian. 

The software’s zonal structure, adapted from Rivian’s R1 off-roader, is claimed to allow for faster updates, improved functionality and more flexible hardware integration than the system in use by today’s VW models.

VW design boss Andreas Mindt said the design of the ID 1 was conceived to project warmth and accessibility, drawing inspiration from both the Up and the Golf. 

“We wanted to give it a friendly face – something that makes you smile even before you get in,” he told Autocar. “That slightly cheeky expression at the front is intentional. It’s a car with character, not just a functional object.”

Push for affordability

Before the ID 1 will come the slightly larger ID 2. The first car to be based on VW’s new MEB Entry platform and the car that kick-starts the German firm’s affordable EV push will be shown in production spec at the Munich show before going on sale early next year.

It will be the base for what VW boss Schäfer has described as the wider Volkswagen Group’s new Electric Urban Car Family, which will be made up of the larger ID 2X, Cupra Raval and Skoda Epiq.

The VW Group is planning a mass assault on the electric B-segment (which has gained life since the release of the Renault 5 earlier this year), with its cars set to start at less than £25,000 to undercut rivals such as the Peugeot e-208 and Vauxhall Corsa Electric.

Power outputs for the ID 2 are set to range from 158bhp to 187bhp, while a flagship GTI hot hatch is set to deliver in the region of 223bhp.

It will offer a top-end range of 280 miles from a 56kWh nickel-manganese-cobalt (NMC) battery pack.

Inside, the ID 2 will feature a functional but spacious interior with both physical controls and a 12.9in central infotainment touchscreen.

A year after the arrival of the hatchback, the raised ID 2X will go on sale. The model will be shown in concept guise for the first time at the Munich show. It will be near-identical to the ID 2 underneath but feature a higher ride height, more rugged design elements and increased ground clearance. 

The definitive naming of VW’s three new entry-level electric models remains a closely guarded secret. However, insiders suggest they could forgo the ID 1, ID 2 and ID 2X names for a combination of the ID sub-brand label and VW’s traditional models, such as ID Up, ID Polo and ID Cross.

All change for larger ID EVs

Away from new models, VW will update heavily its range of current cars. This will start next year with the brand’s two best-selling EVs: the ID 3 hatchback and ID 4 SUV.

Key to the upgrades will be a comprehensive makeover both inside and out, one that technical development boss Kai Grünitz said will be refl ective of the new range of smaller EVs to bring the whole lineup together while improving the user experience inside.

This is part of a move to keep the pair fresh until deep into this decade, when replacements are due. 

The facelifted ID 3 is scheduled to be revealed during the second quarter of next year, while the ID 4 should arrive later in 2026.

VW boss Schäfer said the new ID 4 in particular is “really beautiful” and “will be a completely different car – a huge step up.” 

He added: “We felt it needed to fit in with the new design language going forward, since it is still our most important electric vehicle in numbers.” 

The new ID 4 is understood to be known internally as the ‘electric Tiguan’, hinting at a move to present the two similarly sized SUVs as siblings. 

The company has not confirmed that it will change the electric model’s name, but Schäfer previously suggested that the Tiguan badge would always have a place in VW’s portfolio - even as it goes all-electric.

He said: “We’re not going to throw away the traditional, successful names that have carried us for so long, like Golf and Tiguan. Why would you let them go?”

Above the ID 4, Autocar has been told Volkswagen has decided it will retire the ID 5 from its line-up. Launched in 2021 as a more sporting, coupéstyled sister model to the more upright ID 4, it was primarily aimed at the Chinese market but failed to gain traction there. In Europe, too, it has been overshadowed by the more practical ID 4. It was never offered for sale in the US market.

Its planned cancellation, set to take effect in 2027, forms part of broader efforts to streamline the line-up and concentrate on highvolume models.

2028 to be a pivotal year

Potentially one of the biggest years for VW’s growth in sales of EVs will be 2028, when its most famous badge finally gets fully electrified.

The electric Golf, currently under development at the company’s Braunschweig R&D centre in Germany, will be the first VW model sold in the UK based on the company’s new Scalable Systems Platform (SSP). 

It will use an 800V electrical architecture and feature more advanced battery technology, faster charging and more advanced software functions, marking a signifi cant technological step forward from today’s MEB-based models.

Grünitz previously told Autocar that the real benefit of the new architecture was that it was “highly flexible and highly updateable”.

He added: “With over-the-air updates, I can introduce new functionality to our customers even after they bought the car, without them needing to bring it in for a service. That means it’s really the next step.”

The electric Golf’s design will be inspired by the incoming entry-level EVs, suggested design chief Mindt, while still building on the traditional and familiar Golf design traits.

VW could also merge the Golf model name with the ID sub-brand, resulting in the car being called the ID Golf, although this has yet to be confirmed. 

Following the standard car, both GTI and R hot hatch variants will follow.

The electric Golf is being developed in a joint programme with an electric version of the T-Roc, with both models set to be produced at VW’s Wolfsburg plant.

“Our goal is to build the electric Golf on the new SSP platform there, along with the electric T-Roc,” confirmed VW CEO Schäfer. “This will establish Wolfsburg as the capital of our new all-electric compact class.”

The new SSP-based electric T-Roc will feature new styling, improved interior space and added digital functionality. 

Positioned above the upcoming ID 2X but below the ID 4 successor, it’s expected to become one of VW’s best-selling electric models in future years.

Daniela Cavallo, chair of Volkswagen’s General Works Council, said the electric Golf and T-Roc together “represent a volume in excess of 500,000 units per year”. She added: “The SSP models will be just as important to VW’s future as the MQB has been.”

ICE upgrades also inbound

Alongside the electric Golf and electric T-Roc, VW will continue to sell ICE versions of some models as part of a new strategy that represents a shift in customer sentiment and a growing industry consensus that a mixed drivetrain portfolio will be needed well into the 2030s. 

This has been driven by sales of EVs not accelerating as fast as anticipated and infrastructure concerns remaining in many markets.

As such, Volkswagen is realigning its model cadence and development priorities to offer buyers more flexibility.

In the case of the Golf, this will be an upgraded version of the current hatchback, and a second-generation ICE T-Roc will be launched at the end of this year. 

Set to be revealed at September’s Munich show, it is tipped to be the final new ICE model that Volkswagen will bring to market.

Despite them sharing a name, the ICE T-Roc will be an entirely separate model from its new electric sibling.

With the new ICE T-Roc, VW will introduce a fullhybrid powertrain to its line-up for the fi rst time. The new set-up, similar to that used by the Toyota Prius, combines a petrol engine with an electric motor and battery, enabling limited electric-only driving without the need for external charging.

The petrol engine is expected to be a turbocharged 1.5-litre four-cylinder petrol engine. As well as providing direct drive, it will also function as a generator to recharge the battery. 

Various outputs are planned, ranging from 201bhp to 268bhp and 258lb ft to 295lb ft. The technology differs from VW’s current mild-hybrid and plug-in hybrid systems, offering a cheaper alternative in some of its most popular models. 

Autocar has been told that the powertrain will be available not only on the new ICE T-Roc but also across other MQB Evo-based models, including the Golf and Tiguan, as well as others across the VW Group stable. This pushes the lifespan of those cars until at least 2033, Autocar understands. 

A significant facelift for the Golf next year will bring improved infotainment, mild styling tweaks and a streamlined engine range that will include the new full-hybrid powertrain. 

VW has committed €60 billion (£50.8bn) in further investment into ICE development through to the end of 2028, including this new hybrid push.