Live from the New York Auto Show: Subsidies Withdrawn, Electric Vehicles Cool Down, but Car Manufacturers Are Still Struggling to Push Forward

Sina Finance, Kong Lu, sent from New York

The New York International Auto Show, which began in 1900, is the longest-running and largest auto show in North America.

On opening day, as usual, the World Car Awards were presented first. The BMW iX3 took home the Annual Electric Vehicle Award, and the Chinese brand NIO’s Firefly won the World City Car Award. However, the car was not on display at the scene.

The biggest takeaway this year is that the industry is “making a rational pullback.”

On the one hand, after the $7,500 U.S. EV subsidy was canceled, demand for electric vehicles and their penetration rate have clearly declined, accounting for about 7% of total industry sales. On the other hand, automakers have not stopped; they are still rolling out new electric vehicles. With oil prices soaring amid the Middle East situation, this could create a new window. For example, Kia has launched the cheaper EV3; Subaru has made a three-row seven-seat electric SUV, geared more toward family use; and General Motors has not only the Bolt EV but also the equinox. This year’s EV show also emphasized family-focused, end-to-end solutions.

Among China-related brands, I saw Lotus, backed by Geely. It used to be clearly committed to a pure-electric route, but now it is also adjusting according to market demand and launching a PHEV. Its current issue is that in the luxury car segment, its positioning has not yet fully been worked out. It wants to do both high-end performance and scale, but as a result, sales have faced ongoing pressure. For investors, the gross margin is on the thin side. Wall Street is not very optimistic about sales in 2025; the specific situation will be clearer once the April earnings reports are released.

Editor-in-charge: Wang Xiang

(Editor: Liu Chang)

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