Minnesota EV sales fall 50%

Minnesota’s electric-vehicle market lost momentum at the end of 2025 after a strong start to the year, according to data cited by MPR News from the Minnesota Automobile Dealers Association. EVs accounted for 8.4% of vehicle registrations in the state from January through October 2025, then fell to 3.9% in November and December, a drop the association described as roughly 50%. Scott Lambert, president of the dealers association, told MPR on May 13 that higher gasoline prices were unlikely to quickly bring buyers back. The slowdown came as the broader U.S. EV market also weakened after the federal consumer tax credit expired on Sept. 30, 2025. ### How steep was the drop in Minnesota? MPR News reported on May 13 that Minnesota EV registrations fell by about half in the final two months of 2025 compared with the January-through-October pace. The figures cited from the Minnesota Automobile Dealers Association put the share at 8.4% for the first 10 months of 2025 and 3.9% in November and December. Those numbers matter because MnDOT uses original registrations as its estimate for annual light-duty EV sales as a share of overall vehicle sales. (mprnews.org) The agency says it tracks both battery-electric and plug-in hybrid registrations as part of its statewide performance dashboard. ### Why did sales weaken late in 2025? The federal policy shift in September 2025 is one clear marker in the timeline. The Alliance for Automotive Innovation said the federal consumer EV tax credit expired on Sept. 30, 2025, and fourth-quarter U.S. (mprnews.org) EV sales fell to 246,755 vehicles, or 6.5% of light-duty sales, the lowest market share since the first quarter of 2022. World Resources Institute said U.S. (dot.state.mn.us) EV sales fell 4% in 2025 after a record 2024 and that third-quarter 2025 sales were lifted by consumers rushing to buy before the tax credit ended. That pattern helps explain why late-2025 state data could look especially weak after an earlier pull-forward in demand. Scott Lambert told MPR that gasoline prices were unlikely to reverse the Minnesota trend quickly. His comments, as reported by MPR, pointed to softer near-term consumer demand rather than a short-term rebound tied to prices at the pump. (autosinnovate.org) ### Did Minnesota policy also get more expensive for EV drivers? A July 24, 2025 post from Drive Electric Minnesota said a new state law would raise annual EV registration surcharges starting in January 2026. (wri.org) The group said the previous flat $75 EV surcharge would at least double to $150, with some drivers paying $200 or more depending on a vehicle’s sticker price and age. That group opposed the change, and its characterization of the fees as a barrier to adoption is its own. (mprnews.org) But the underlying dates and fee structure are specific: the higher registration charges begin in 2026, and an additional tax on electricity at public fast chargers is scheduled to begin in 2027, according to the same post. ### What does the slowdown mean for charging buildout? MnDOT says Minnesota’s goal is for 20% of light-duty vehicles registered in the state to be EVs by 2030. (driveelectricmn.org) The agency also says it expects to invest about $68 million in federal NEVI funds over five years from fiscal 2022 through 2026, with the first phase focused on fast-charger stations along Interstate 35, Interstate 90 and Interstate 94. The state’s second NEVI phase will use findings from MnDOT’s 2025 EV Infrastructure Needs Assessment to support a longer-distance charging network around Minnesota, the agency says. (driveelectricmn.org) Slower vehicle sales do not change those published plans by themselves, but they do mean the market is entering 2026 with weaker immediate demand than Minnesota had earlier expected. That final point is an inference from the sales data and MnDOT’s stated targets. (dot.state.mn.us) ### Where should readers watch next? January 2026 is the first concrete date to watch in Minnesota because the higher EV tab surcharges took effect then under the 2025 law, according to Drive Electric Minnesota. State charging deployment is also moving through MnDOT’s NEVI program, which the agency says is funded through federal fiscal 2026 and centered first on I-35, I-90 and I-94 corridors. (dot.state.mn.us) MnDOT’s EV dashboard and future dealer-association registration updates will show whether the late-2025 drop was a brief post-incentive slump or the start of a longer pullback in Minnesota. (dot.state.mn.us) (driveelectricmn.org)