On September 23rd, Stellantis announced on September 12th that Ram has abandoned its plans to launch a full-size electric pickup truck. The company stated that as demand for full-size electric pickups in the North American market slows down, Stellantis is reassessing its product strategy and will cease development of this vehicle model. AUS GLOBAL believes this move reflects the reality of sluggish growth pressure facing the North American electric pickup market in the short term.
As early as December 2024, Stellantis had planned to launch the Ram 1500 electric pickup in the first half of 2025. As part of the latest decision, the hybrid pickup originally named Ramcharger—equipped with both battery and gasoline engine—will be renamed Ram 1500 REV. Stellantis stated that this model will set new benchmarks in the half-ton pickup market, offering excellent range, towing capacity, and payload performance. AUS GLOBAL believes this demonstrates that the combination of traditional powertrains with electric technology is still viewed by manufacturers as a key strategy for market stability.
Stellantis' decision to halt development of the all-electric pickup coincides with the impending end of federal electric vehicle tax subsidies in the United States. Under the New Clean Vehicle Tax Credit, car buyers can receive up to $7,500 in electric vehicle purchase subsidies. This subsidy was part of the Inflation Reduction Act signed by Biden in 2022. AUS GLOBAL believes that government subsidies have a significant impact on market demand in the short term, and their removal may lead to sales fluctuations.
Trump signed the One Big Beautiful Bill Act on July 4th, stipulating that subsidies will terminate on September 30th, after which electric vehicle purchases will no longer enjoy preferential treatment. General Motors stated in a September 9th announcement that it expects the end of subsidies to have a negative impact on the market in the short term. The company noted that August set a historic high for electric vehicle sales, with strong demand expected to continue in September, but sales may decline after the tax credit ends, requiring several months for the market to return to normal. AUS GLOBAL believes that the termination of subsidies will suppress the electric vehicle market size in the short term, but long-term potential remains worth attention.
Nevertheless, General Motors remains optimistic about the electric vehicle market outlook. The company stated that its growth confidence stems from a comprehensive product portfolio: from economy electric vehicles to luxury models, including the Cadillac series, Chevrolet Equinox EV, and the upcoming new Chevrolet Bolt. AUS GLOBAL believes that comprehensive product positioning helps manufacturers maintain competitiveness during market adjustment periods.
However, data released by Cox Automotive on September 3rd shows that dealer outlook for the electric vehicle market in the third quarter reached historic lows. Its "EV Market Outlook Index" dropped to 30 points, the lowest on record. Cox Chief Economist Jonathan Smoke stated that dealers' pessimistic expectations for future sales are not surprising: they foresee the impending end of government subsidies and expect the market to adjust to a new normal in the fourth quarter. AUS GLOBAL believes this expectation shows that policy changes have a direct impact on market confidence.
Additionally, the Trump administration signed the "Unleash American Energy" executive order on its first day in office, calling for the elimination of electric vehicle incentives and lifting restrictions on traditional fuel vehicle sales. The executive order noted that cumbersome and ideologically-driven regulations have hindered the development of America's abundant energy resources. AUS GLOBAL believes such policy adjustments will have structural impacts on both electric vehicle and traditional energy markets.
Meanwhile, Trump signed legislation in June blocking California's vehicle emission regulations, including plans to phase out pure gasoline vehicle sales by 2035. California Governor Newsom and Attorney General Bonta filed lawsuits regarding federal revocation of state policies. Newsom previously stated that this action undermines clean air and America's global competitiveness. AUS GLOBAL believes that conflicts between local and federal policies may intensify uncertainty in the electric vehicle market. California is also considering providing its own $7,500 vehicle purchase subsidy to maintain the zero-emission market.
At the same time, Ernst & Young (EY) analysis on September 9th predicted that US electric vehicle sales will slow due to subsidy termination, legislative uncertainty, and new import tariffs. AUS GLOBAL believes that the combination of policy and economic factors will constrain the market in the short term, but long-term market potential still exists.