Industry analysts and state officials say the divergence puts U.S. automakers at risk of ceding long-term ground to China, which most in the industry regard as the dominant force in what they describe as the sector’s future direction.
DETROIT — Electric vehicles no longer hold a dedicated lane at the North American International Auto Show. The indoor tracks once set aside exclusively for EVs now admit hybrids and gas-powered vehicles — a change that organizers say reflects where the U.S. industry stands since President Donald Trump returned to the White House with a pro-fossil fuels agenda.
“The show will always reflect what’s happening in the industry at the consumer level,” said Todd Szott, chairman of this year’s event and an auto dealer. “Obviously things have changed in the EV landscape.”
U.S. sales of electrified vehicles, including plug-in hybrids, grew just 1 percent in 2025, according to data released this week by Benchmark Mineral Intelligence. Pure-EV market share came in at just under 8 percent, with approximately 1.23 million units sold — a slight decline from 2024. China posted 17 percent growth in plug-in hybrid and electric vehicles last year. Europe recorded a 33 percent increase.
Industry analysts and state officials say the divergence puts American automakers at risk of falling behind as China consolidates its position in what most in the sector describe as the industry’s long-term direction.
Global gap draws concern
Michael Robinet, vice president of forecast strategy at S&P Global Mobility, said during a panel on industry trends at the show Wednesday that the competitive gap is the central worry.
“What we worry about is how competitive will we be on the global stage as the market continues to advance around us,” Robinet said.
Michigan Gov. Gretchen Whitmer struck a similar note in a speech at the event Thursday.
“We have to look at what we’re up against. In a word — China,” Whitmer said. “China wants to dominate every part of auto manufacturing. They’re making major headway. They’ve captured major market share almost everywhere except the U.S. and Canada. We have to meet these challenges.”
Policy shifts and industry write-downs
The Trump administration has moved on several fronts to reduce the federal government’s role in promoting EV adoption. Trump revoked a Biden-era target for half of new vehicle sales in the U.S. to be electric. His administration also tried to block money obligated to EV charging infrastructure across the nation’s highways and weakened fuel economy standards, going so far as eliminating penalties for automakers that fail to meet them. Under Trump, Congress cut tax incentives that had saved buyers up to $7,500 on an EV purchase.
Trump visited the Ford River Rouge Complex in suburban Dearborn earlier this week and used the occasion to defend those policy choices.
“Among my first acts in office was to end the radical left war on oil and gas and stop the crusade to kill American energy and, frankly, to open up cars so that you don’t have to have an electric car,” Trump said in remarks to an economic club before the plant tour. “I love electric cars. I think they’re great. But I’ve been saying it for four years. They wanted everybody to have an electric car in a very short period of time.”
The policy reversals have contributed to substantial write-downs across the industry. Ford Motor Co. announced $19.5 billion in charges tied to electrification efforts last month and ended production of the all-electric version of its F-150 Lightning truck. General Motors recently announced $6 billion in EV-related charges and rolled back some of its EV commitments. Tesla, once the market leader in the sector, had a difficult 2025.
Ford marketing manager Shawn Strain said the company remains committed to EVs despite the changed environment.
“I still push for it because, I mean, it is the future of the company,” Strain said. “We still are just completely committed to EVs. And it may not be as overt as we once were.”
Direction of technology disputed
Will Roberts, automotive research lead at Benchmark Mineral Intelligence, said U.S. policy has reshaped the competitive landscape. He said automakers would benefit from keeping “things ticking along in the background with a really compelling EV offering” to avoid falling further behind.
Pete Buttigieg, who served as transportation secretary under former President Joe Biden, said during a panel at the show that Trump cannot prevent electric vehicles from eventually becoming the dominant automotive technology.
“But he can stop America from being the leader in that technology,” Buttigieg said. “Industry should point a different direction.”