Automakers in the United States are scaling back their electric vehicle (EV) offerings as demand for battery-electric vehicles declines, prompting cancellations of slow-selling models from major brands including Kia, Hyundai, Honda, and Tesla.
According to Cox Automotive, EV market share in the U.S. has rebounded to roughly 6%—far below peak expectations—meaning 94% of car buyers continue to favor traditional gas-powered vehicles. With several “popular” EV models already discontinued by manufacturers such as Nissan and Ford, the latest round of cancellations highlights a growing reassessment of EV strategies.
Kia and Hyundai Cut Key EV Models
Kia is discontinuing both the Niro EV and the EV6, except for the EV6 GT trim. The Niro EV, a five-door hatchback praised for its balance of space, affordability, and practicality, had built a modest following, particularly in urban areas without widespread home charging.
Hyundai, Kia’s sister company, is similarly cutting back, canceling the Ioniq 6 while maintaining its sportier N models. Both brands share much of their underlying EV architecture, illustrating the broader impact on the Hyundai-Kia lineup.
Honda and Acura Retreat from Planned EVs
Honda has canceled two planned models in the U.S. as well as an Acura RSX EV, following the earlier discontinuation of the Acura ZDX EV. In a detailed public statement, Honda cited declining EV demand and the risk of long-term financial losses as the primary reasons for the cancellations, signaling a cautious approach to electrification in certain markets.
Tesla Ends Production of Longtime Models
Tesla officially confirmed it will cease production of the Model S and Model X after the second quarter. Despite speculation, the move is not a sign of the company exiting the automotive market. Tesla continues to dominate U.S. EV sales with a 62% market share, largely fueled by the Model 3 and Model Y.
Other Notable EV Cuts
- Nissan: The Ariya has been discontinued, while the entry-level Leaf S trim is no longer offered in the U.S., likely due to profitability concerns.
- General Motors: The Bolt EV is returning briefly before being phased out again, and the BrightDrop EV work van line has been discontinued.
- Volkswagen: The ID.Buzz minivan was removed from the U.S. market in late December, despite positive critical reception.
The wave of cancellations comes as the industry marks the 30th anniversary of pioneering EVs like GM’s EV1 and the first-generation all-electric Toyota RAV4. Analysts suggest that while the era of electrification is not over, the market is shifting, with consumers increasingly favoring hybrids or selective EV models over full electrics.
