Live from the New York Auto Show: Subsidies Exit, Electric Vehicles Cool Down, but Car Companies Still Struggling to Push

Sina Finance Kang Lu Reporting from New York

The New York International Auto Show, which began in 1900, is North America’s oldest and largest auto exhibition.

On the opening day, as usual, the World Car Awards were announced first. The BMW iX3 won the annual electric vehicle award, and the Chinese brand NIO’s Firefly received the World Urban Car Award, but the car itself was not seen on site.

My biggest takeaway this year is that the industry is undergoing a “rational pullback.”

On the one hand, after the U.S. cancels the $7,500 subsidy for electric vehicles, EV demand and penetration rates have clearly fallen, accounting for about 7% of total industry sales. On the other hand, automakers have not stopped—they’re still rolling out new EVs. With the Middle East situation driving oil prices soaring, it may create a new window. For example, Kia has launched the more affordable EV3; Subaru has made a three-row, seven-seat electric SUV, with a more family-oriented positioning; and General Motors not only has the Bolt EV but also the Equinox. This year’s electric vehicle showcase also emphasized offering overall solutions for families.

Among the China-related brands, I saw Lotus, which is backed by Geely. It had previously been clearly committed to a pure-electric route, but now it has also started to adjust according to market demand, launching a PHEV. Its current issue is that in the luxury car segment, its positioning has not yet been fully sorted out. It wants to do both high-end performance and scale, but as a result, sales have been under continuous pressure. For investors, the gross profit margin is somewhat thin. Wall Street isn’t very optimistic about sales in 2025; the specifics will be clearer after the April financial report is released.

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Responsible editor: Wang Xiang