North American EV Demand Drops Sharply Despite Rising Global Sales, Iran War

North American EV registrations plunged 28% in April to about 120,000 units even as global EV/PHEV registrations rose to 1.6 million (+6% YoY). The report highlights sharp regional divergence: Europe jumped 27% to 400,000 units while China’s exports topped 400,000 in April (1.4m Jan–Apr), boosting Chinese automakers’ overseas share. U.S. policy changes — relaxed emissions rules and the end of a $7,500 federal EV tax credit in Sept 2025 — and automaker moves (GM pausing some EV programs, Ford pressing ahead) are cited as drivers of weaker North American demand. Tesla’s Model Y remains popular in the U.S., but overall U.S. momentum lags, raising competitive and policy risks for domestic OEMs and supply chains. The China–U.S. dynamic and possible talks between leaders could affect market access for Chinese EVs. The piece mixes data-driven market readouts with industry and policy context, signaling regional winners (Europe, Chinese exporters) and pressure points for North American EV producers.