Auto Industry Shifting Gears During a Rough Ride

Experts predict intensifying dealer competition in 2026.
Auto Industry Shifting Gears During a Rough Ride
Several car models are seen lined up. Mikbiz/Shutterstock
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The U.S. automotive industry experienced significant changes in 2025 as the expiration of electric vehicle (EV) subsidies, the introduction of tariffs, and regulatory rollbacks reshaped both demand and supply.

The shifts pushed the market away from EVs toward hybrids and traditional internal combustion engine vehicles, while also favoring domestically produced models over foreign-made cars.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”