August 29, 2025

 

Accelerating EV Adoption as Tax Credits Loom End

In the U.S., both S&P Global Mobility and J.D. Power & GlobalData project strong August car sales thanks to surging electric vehicle (EV) demand driven by expiring federal tax credits at the end of September.

• S&P Global Mobility estimates 1.43 million vehicles sold, with a 15.8 million SAAR, subtly below July's 16.4 million
• J.D. Power & GlobalData forecast an 8.2% year-over-year increase in total sales (1.483 million), driven partly by record-high EV retail share of 12%
• Cox Automotive expects a 1.46 million monthly volume and a 16.0 million SAAR, aided by strong EV demand as buyers rush to leverage tax incentives.

Across all forecasts, EVs stood out as a substantial growth driver — though analysts suggest the spike might be temporary, likely to fade once incentives lapse.

Resources: S&P Global, News Release Archive, J.D. Power, Aftermarket Matters, Cox Automotive Inc.

 

Global Market Shake-Up: Europe Rallies, BYD Surpasses Tesla

European new car sales surged 5.9% in July, marking their strongest rebound since April 2024. Notably, BYD, China’s EV manufacturer, outsold Tesla in Europe for the first time, benefiting from the electric vehicle surge.

Resources: Reuters, ArenaEV

 

Tariff Talk: Tensions and Trade Shifts

• Germany’s automotive lobby urged Washington to reduce U.S. tariffs on EU car imports from 27.5% to 15%, following EU efforts to lift duties on American goods starting August 1.
• On the flip side, the U.S. is expanding national-security tariffs across multiple sectors, raising alarm over increased input costs, especially for automakers—though relief measures for affected sectors like automotive are being considered.
• In parallel, India is contemplating WTO consultations with the U.S. over tariffs, possibly repeating earlier actions on autos, steel, and aluminum

Resources: Reuters, The Wall Street Journal, The Times of India

 

Autonomy & AI: Nvidia Powers the Next Driving Frontier

• Nvidia revealed a 69% year-over-year spike in automotive revenue, fueled by its autonomous driving technologies. The new Thor SoC and full-stack DRIVE AV software entering production signal powerful momentum in the AI-driven automotive future.
• Notably, Tesla is transitioning away from its own Dojo supercomputer to Nvidia and AMD chips, aligning with broader moves toward industry-standard architectures.

Resources: Investors

 

Automotive Industry Pushback on Sustainability Goals

Amid political and practical headwinds, EU automakers and suppliers are pushing back on 2035 net-zero mandates, citing dependency on Asian battery supply, limited charging infrastructure, and rising costs. This tension underscores broader struggles to align sustainability policies with economic realities

Resource: Reuters

 

India’s Clean-EV Ambition Gains Speed

India is moving rapidly toward electric vehicle leadership:

• Prime Minister Modi inaugurated Suzuki’s eVITARA BEV plant in Gujarat, set to export globally.
• A plant producing hybrid battery electrodes—under a Toshiba, Denso, Suzuki collaboration—was also launched, with 80% local output capacity

Resource: The Times of India