US President Donald Trump's return to the White House has coincided with a notable slowdown in the growth of electric vehicle (EV) sales and shipments, reversing the significant expansion seen during Joe Biden's presidency. Industry insiders and supply chain experts note that the shift in policy priorities, including alterations to green energy incentives and EV subsidies, is changing market dynamics both domestically and internationally.
Trump's recent "big, beautiful bill" introduces adjustments that have impacted green energy support, eliciting criticism from figures such as Tesla CEO Elon Musk, who previously clashed with Trump over EV policies. As the US remains one of the largest automotive markets globally, these developments influence not only US demand but also global trends.
While EV adoption continues to grow worldwide, the American market is showing signs of contraction in this segment, reflecting the administration's emphasis on internal combustion engine (ICE) vehicles.
Hydrogen fuel cell vehicles remain largely in the developmental phase globally and have yet to gain significant market traction. Many countries and regions remain in early stages of deployment, which exposes them to vulnerabilities amid fluctuating market conditions.
Against this backdrop, Trump's administration projects a sustained increase in demand for ICE vehicles and related components, while hybrid vehicles are experiencing strong sales driven by ongoing concerns about energy efficiency and carbon emissions.
Hybrids gain traction in diverse markets amid uncertainty
Hybrid vehicles, once viewed as transitional solutions bridging gasoline and fully electric powertrains, have gained renewed popularity amid consumer hesitancy over EVs' range and charging infrastructure. Market trends show increased preference for hybrids in several regions, including the UK, where energy-efficient models dominate demand.
Toyota Motor Corporation exemplifies this trend, as its 2025 Toyota RAV4 Hybrid reportedly sold out within 17 days of launch. Meanwhile, Mercedes-Benz has recently adjusted its electrification strategy, with CEO Ola Källenius acknowledging a "course correction" that retains a focus on gasoline engines and hybrid systems alongside battery electric vehicles.
This repositioning underscores the persistence of internal combustion technologies in the near to medium term despite global pushes toward full electrification.
Within Taiwan, the EV market continues to expand gradually, supported by the introduction of domestically produced electric vehicles, which are expected to gain traction in the latter part of 2024. However, hydrogen fuel cell vehicles—including those designed for personal, commercial, and public transport—are progressing more slowly than forecasted, reflecting the need for stronger alignment between government initiatives and automotive industry development.
Notably, hybrid vehicles have achieved significant milestones in Taiwan. For instance, Hybrid sales surpassed 100,000 units for the first time in 2024, representing 24% of new car sales, both a new volume and market share record. This increase signals robust consumer interest aligned with broader global tendencies, suggesting continued growth for hybrid models as a key segment amid ongoing shifts in automotive propulsion technologies.
The evolving US policy landscape and broader global trends indicate that while full electrification faces challenges, hybrid vehicles offer a pragmatic avenue for emissions reduction and fuel efficiency improvements in multiple markets, including those with varied infrastructure and regulatory environments.
Article translated by Jingyue Hsiao and edited by Jack Wu
