EV Market Surges Ahead as Tax Credit Deadline Looms
By EVWorld.com Si Editorial Team
In September 2025, the ID.4 Pro RWD is available for lease at just $129/month for 24 months with $2,499 due at signing, making it one of the most affordable EVs on the market
By EVWorld.com Si Editorial Team
The electric vehicle market is experiencing a dramatic upswing as the federal $7,500 EV tax credit approaches its scheduled expiration on September 30, 2025. Automakers and consumers alike are responding with urgency, driving record sales and unprecedented discounts.
Major manufacturers are offering deep incentives to clear inventory and capitalize on the remaining window for federal support. Honda’s 2025 Prologue is seeing discounts of up to $19,000 off MSRP, while Lucid has slashed prices by more than $31,000 on select models. Leasing has emerged as the most cost-effective strategy, thanks to a provision that allows even imported EVs to qualify for the credit.
Inventory levels reflect the surge in demand. U.S. EV supply dropped to just 59 days in August, down from 99 days in June. Hybrids are even tighter at 52 days, while gas-powered vehicles remain at 67. Subaru, Hyundai, and Kia are aggressively trimming stock, while Ford and Mazda are seeing modest increases.
Consumers are responding to the deals. The Volkswagen ID.4 is currently leasing for $129/month with $2,499 down, making it one of the most attractive offers on the market. Other models like the Hyundai IONIQ 5 and Honda Prologue are also moving quickly.
Politically, the phase-out of the tax credit is tied to the One Big Beautiful Bill (OBBB) Act, which eliminated many green incentives. The IRS has clarified that buyers can still qualify for the credit if they sign a binding contract and make a payment by September 30—even if delivery occurs later.
Globally, EV sales are surging. August saw 1.7 million EVs sold, a 15% increase year-over-year. Europe is leading the charge, with Germany and the UK posting growth rates between 31% and 45%. The U.S. also hit a record monthly high as buyers rush to beat the deadline.
Sources
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