Key facts
- US EV sales dropped 20.5% in Q2 2026, following earlier declines.
- Automakers are discontinuing unprofitable EVs to focus on more affordable, long-range models.
- The standard Hyundai Ioniq 6 is discontinued in the US due to low sales.
- Hyundai has paused imports of the 2026 Kona Electric, with a potential return in 2027.
- The Kia Niro EV has been discontinued in the US, with the hybrid version remaining.
- The end of the federal $7,500 tax credit for US-made EVs in September 2025 impacted sales.
The US electric vehicle market is facing a significant contraction, with numerous models being discontinued or paused as automakers reassess their strategies. This trend is partly attributed to the expiration of the federal $7,500 tax credit for US-made EVs in September 2025, which has led to a noticeable decline in consumer interest.
According to Cox Automotive data, EV deliveries dropped 20.5% in the second quarter of 2026, following a 27% decrease in the first quarter and a substantial 36% plunge in the final quarter of 2025. This slowdown has prompted changes in the models available on dealership lots.
Several automakers have already made significant adjustments. By the end of 2025, Ford ceased production of the F-150 Lightning, Nissan discontinued the Ariya, Acura stopped building the ZDX, and Volkswagen has paused the ID. Buzz until 2027. This reshaping of the EV landscape continues into 2026.
Hyundai has confirmed that the standard model of its Ioniq 6 sedan is discontinued in the US, citing low sales compared to its crossover sibling, the Ioniq 5. The automaker sold only 229 Ioniq 6s in February 2026, its final full month of sales. Sam Abuelsamid, vice president of market research at Telemetry, noted that declining sedan sales overall contributed to the decision. Hyundai plans to continue importing a limited number of the higher-performance Ioniq 6 N models and will still ship the Ioniq 6 to Canadian dealerships.
Additionally, Hyundai has paused imports for the 2026 Kona Electric, a model that was one of the more affordable EVs on the market. It is expected to return for the 2027 model year, with 2025 models still available. Kia's Niro EV has also reportedly been discontinued in the US, according to InsideEVs, with the hybrid version of the model set to continue. The exposure to US automotive tariffs and slowing EV sales reportedly made the Korean-built Niro EV difficult to justify for American dealerships.
Analysts suggest this is part of a broader strategy by legacy automakers to retool their EV offerings. "A lot of automakers are going back to the drawing board. They're looking to discontinue unprofitable EVs and replace them with more affordable, long-range EVs," Seth Goldstein, an analyst at Morningstar, told Business Insider.