A significant shift in electric vehicle (EV) strategies has cost global car manufacturers approximately $65 billion in writedowns. This financial revaluation contrasts sharply with the situation in the United Kingdom, where the demand for electric vehicles continues to rise, despite the introduction of new taxes and increasing scrutiny of policies.
Carmakers in the United States, Europe, and Japan have reported substantial losses over the past year as consumer demand fell short of projections. For example, Stellantis recently announced a staggering $26 billion charge after discontinuing several fully electric models and bringing back its 5.7-litre engine in the US market. This decision resulted in a reduction of around $6 billion in the company’s market value. Stellantis had initially aimed for electric vehicles to constitute all European passenger car sales by 2030 and half of its sales in the US.
“The EV market is dramatically changing,”
stated Noriya Kaihara, executive vice-president of Honda. The company predicts annual EV-related losses of $4.5 billion, including $1.9 billion in impairments, as it reassesses its strategy and dissolves its US partnership with General Motors.
Ford has also disclosed a substantial writedown of $19.5 billion after cancelling its electric F-150 pickup model. Similarly, General Motors recorded a $7.6 billion loss tied to its EV operations. Following changes to US EV credits and emissions policies, industry experts now estimate that electric vehicles will account for only around 5 percent of new car sales in the United States in the coming years, which is roughly half of their current market share.
Analyst Stephen Reitman from Bernstein pointed out that many manufacturers misjudged the market dynamics, saying, “Everyone got caught up in the kind of euphoria of ‘look at the valuations Tesla was getting’… and they didn’t bring the customers with them.” Issues such as pricing, range limitations, and charging infrastructure have all contributed to the current climate. Michael Tyndall, an analyst at HSBC, echoed this sentiment, noting that potential additional costs and uncertain financial implications require a cautious approach from the industry.
UK Market Defies Global Trends
In stark contrast, the UK automotive market is experiencing a robust shift towards electrification. According to the Society of Motor Manufacturers and Traders (SMMT), more than two million cars were registered in March 2025, marking the first time this benchmark has been reached since 2019. Battery electric vehicles (BEVs) accounted for 23.4 percent of total sales, with EV registrations peaking at 25.4 percent in October 2025.
The transition to electric vehicles is also being driven by rental and fleet operators, who are increasingly adopting electric and low-emission vehicles. This shift is supported by the implementation of clean air zones and company car tax incentives. Although costs are on the rise, policy support remains steadfast.
Starting in April 2028, electric car drivers in the UK will be subject to a new mileage-based Electric Vehicle Excise Duty (eVED) set at 3 pence per mile, while drivers of plug-in hybrids will pay 1.5 pence per mile. For a driver covering 10,000 miles annually, this translates to an annual cost of £300 under the new system. Treasury minister Dan Tomlinson emphasized that the charge “will ensure all car drivers contribute, but will still maintain important incentives to switch to an electric vehicle.”
The contrasting trajectories of global car manufacturers and the UK market highlight the complexities of the evolving EV landscape. As firms reassess their strategies amidst financial challenges, the UK continues to demonstrate a strong commitment to electrification, positioning itself as a leader in the adoption of electric vehicles.
