Motor industry leaders are anticipating a sharp fall in American electric vehicle sales after the elimination of a vital R135 000 tax incentive for purchasers.
Speaking at a Detroit gathering recently, Ford chief executive, Jim Farley, described the development as "a game-changer", mere hours before the federal subsidy lapsed.
Farley indicated that he would not be surprised if electric car sales plummeted to just 5% of overall US vehicle sales next month. This figure represents approximately half the August level, a monthly high as buyers hastened to benefit from the credit and would rank among the weakest performances in recent years.
Christian Meunier, chairman of Nissan Americas, was equally pessimistic: "The EV market is going to collapse in October." Whilst Japan's Nissan continues launching a refreshed Nissan Leaf compact EV in the American market, Meunier anticipates intense rivalry as competing manufacturers battle to secure buyers for their electric vehicles.
"That competition is going to be super-brutal, because there is an overabundance of stock. Our competitors have built a lot of EVs," Meunier remarked in an interview with Reuters.
The R135 000 tax credit was initially authorised by Congress in 2008 for electric car and plug-in hybrid vehicle buyers. The 2022 Inflation Reduction Act prolonged the incentive, though it simultaneously restricted eligibility to American-built EVs incorporating specified levels of domestically sourced batteries and components.
US President Donald Trump's tax-reduction and spending legislation, enacted in July, established the 30 September termination date. His administration has implemented additional measures potentially hampering EV momentum, including suspending penalties levied on car companies failing to meet fuel-efficiency standards. During last year's campaign, Trump pledged to terminate former President Joe Biden's "EV mandate".
Research conducted jointly by academics from the universities of California, Berkeley, Duke and Stanford in November 2024 suggests electric vehicle registrations could decline by 27% in the absence of the tax credit.
The United States trails other principal automotive markets in EV uptake. In China, the world leader in electric vehicles and battery production, the combined sales of electric and plug-in hybrid vehicles have exceeded 40% in recent months. Europe's adoption rate has remained near 20%.
Despite the American tax incentive being available, electric car sales growth had already slowed over the previous two years, prior to this summer's deadline-driven surge. This deceleration occurred notwithstanding manufacturers introducing numerous new EV models.
Certain dealers fear the removal of the R135 000 tax credit will leave them burdened with unsold electric vehicles.
Audi South Africa has introduced the new Q5 range, comprising the third-generation Q5 SUV, second-generation Q5 Sportback, and the performance-focused SQ5 SUV and SQ5 Sportback. The range is built on Audi's Premium Platform Combustion and brings a new generation of petrol and diesel engines to the nameplate.
Geely Auto South Africa (GASA) has introduced Riddara, Geely Auto Group's new energy bakkie brand, to the South African market.
Ford’s next big electric vehicle push is less about a dramatic new badge and more about what happens behind factory doors.
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South Africa's new vehicle market sustained strong momentum in August 2026, with aggregate sales increasing by 11,4% year-on-year to 57 898 units, says the Automotive Business Councill | naamsa.
South Africa’s new-vehicle market maintained its momentum in August, with aggregate sales of 57 898 units representing an increase of 11.4% compared with the same month last year.
