Auto Market Sees a Return to Gas-Powered Vehicles

The automotive market is currently experiencing a significant shift in consumer demand. Buyers are increasingly favoring larger, gas-powered vehicles, while sales of electric vehicles (EVs) are losing momentum. This trend is becoming increasingly apparent as automakers adjust their strategies.

New York Auto Show Highlights Changing Preferences

Data from the New York Auto Show reveals a clear pattern: rising sales of midsize SUVs and trucks. This contrasts sharply with declines in sales of compact cars and EVs, indicating a widening gap between industry expectations and actual consumer behavior. FOX Business correspondent Jeff Flock reported on these trends from the show.

Sales Figures Reflect the Shift

According to Cox Automotive and Kelley Blue Book, midsize SUV sales increased by 15% in February compared to the same period last year. Midsize truck sales also saw a substantial rise, increasing by 14%. Conversely, compact car sales fell by 8%, and EV sales experienced a significant drop of 26% during the same timeframe.

EV Sales Momentum Wanes

EV sales had previously reached a peak of 10.5% of U.S. new-vehicle sales in the third quarter of 2025. However, this momentum stalled in the fourth quarter, falling to 5.8% as government incentives began to diminish. This demonstrates a considerable pullback following earlier gains in EV adoption.

Honda Adjusts EV Plans

The changing market conditions have prompted some automakers to reassess their EV strategies. Honda has announced the cancellation of three planned EV models for the U.S. market.

Economic Factors and Tariffs Play a Role

Nissan Americas Chairman Christian Meunier highlighted the impact of tariffs on the automotive industry. Automakers and suppliers have absorbed billions of dollars in added costs, making it difficult to maintain affordable prices for consumers.

Nissan's Strategy to Mitigate Costs

Meunier stated that Nissan initially faced a $4 billion exposure due to tariffs, which they have reduced to $1.5 billion in 2025. The company aims to eliminate this exposure entirely by increasing domestic production. “That’s our mission to build as many cars in the U.S. as we can,” Meunier said.