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In a significant development for the electric vehicle (EV) industry, Germany and the UK are witnessing a surge in EV registrations, thanks to government incentives that are reducing the cost burden for both consumers and companies. Meanwhile, US carmakers are grappling with challenges presented by tariffs on EV components.
In Germany, the legislative environment is fostering e-mobility through fiscal incentives. These incentives, which target employers and company car users, encourage EV adoption in corporate fleets and among employees. As a result, the German new-car market recorded double-digit year-on-year growth in July 2025, with 264,802 models registered, representing a 11.1% increase. EV registrations in Germany rose by 58% in July 2025, capturing an 18.4% share of the market.
Similarly, in the UK, the government introduced incentives for EV purchases in July 2025, offering up to £3,750 for the most sustainable models and £1,500 for those with lower green credentials. These incentives, coupled with zero-emission vehicle mandates, have supported steady BEV market growth. Despite a 5% year-on-year decline in UK registrations in July 2025, EV deliveries grew by 9.1%.
However, in the US, tariffs on EV components are causing cost pressures, potentially affecting carmaker profitability expectations and output forecasts. Ford, for instance, now anticipates a net tariff-related headwind of around $2 billion, which has led to a revised full-year adjusted EBIT forecast of $6.5 billion to $7.5 billion. General Motors expects the tariff situation to worsen in the third quarter and has committed to previous estimates that trade headwinds will hit its bottom line by up to $5 billion this year.
The US automotive industry took an $11.8 billion hit due to tariffs in the first half of 2025, according to the Wall Street Journal. This has led to uncertainties and challenges for manufacturers, forcing them to recalibrate their forecasts.
In a move to strengthen its position in the EV market, US battery maker Lyten has entered into a binding agreement to acquire Northvolt's remaining assets in Sweden and Germany. The deal includes Northvolt Ett and Ett Expansion, Northvolt Labs in Sweden, Northvolt Drei in Germany, and all of Northvolt's remaining intellectual property. The acquired assets are valued at approximately $5 billion.
These developments underscore the significant role government incentives play in driving EV adoption and the potential impact of tariffs on the EV market in different regions. As the global EV market continues to evolve, it will be interesting to see how these trends unfold in the coming years.
In the UK, the government's initiatives and incentives for electric vehicle (EV) purchases in July 2025 have promoted steady growth in the BEV market, while in the US, tariffs on EV components are creating cost pressures, potentially affecting carmaker profitability and output.
An American battery maker, Lyten, has recently made a move to boost its EV market position by entering into a binding agreement to acquire Northvolt's remaining assets in Sweden and Germany, which are valued at approximately $5 billion.
