The electric vehicle (EV) market is experiencing a slowdown in 2025, with major players like Chevrolet’s BrightDrop and Rivian reporting significant declines in sales.
Photographs of hundreds of Chevrolet BrightDrop vans stored in lots have surfaced, indicating a surplus of inventory. According to reports, around 300 vans were spotted at a storage lot in Flint, Michigan, with representatives from the Canadian plant’s union suggesting that the vehicles were intended for delivery to the U.S. before tariffs were enacted.
Rivian has also seen a decline in sales, with a 36% drop in the first quarter of 2025 compared to the same period in 2024. The company delivered 8,640 vehicles during this time, which is approximately 60% of the vehicles it produced.
The decline in EV sales is attributed to various factors, including the end of federal rebates and additional registration fees imposed by some provinces. The federal government’s $5,000 rebate ended earlier than expected in January, and provinces like Quebec, Alberta, and Saskatchewan have introduced extra fees for EV owners.
Despite these challenges, some manufacturers are exploring new strategies. General Motors is reportedly in discussions with Hyundai to jointly develop commercial vans, potentially to be built in the U.S. by 2028. This move could help GM circumvent tariffs and stay competitive in the market.
The overall zero-emission vehicle (ZEV) penetration rate in Canada fell to 13.3% in January 2025, down from 15.4% in 2024. J.D. Power reports that EVs are now sitting on dealer lots for an average of 55 days before being sold, up from 22 days in the first quarter of 2023.
As the EV market continues to evolve, manufacturers will need to adapt to changing consumer preferences and regulatory environments. The slowdown in sales presents both challenges and opportunities for companies like Rivian and Chevrolet to reassess their strategies and innovate in a competitive landscape.
