Subsidies, Silence & Sad Resale: The Electric Car Hangover Is Here

Welcome to the electric car parade. Full of shiny promise, government subsidies, green badges and, apparently, reset buttons. But while the world witnessed record-breaking global EV sales in 2024 and 2025, I’m sitting here scratching my chin thinking: Are we really charging into the future, or gliding off a cliff in silent luxury?

According to the International Energy Agency, “more than 20% of new cars sold worldwide in 2024 were electric,” and 2025 is expected to push EVs to one in every four new vehicles.
So yes, things are growing. Until you peak behind the curtain.

The Subsidy Trampoline & The Quiet Deflation

Here’s the thing: EV sales might be surging, but much of that up-tick is propped up by subsidies, incentives and export booms. In markets where support is dialled back (hello, USA) things get choppy.
Let’s talk value: Many EVs are suffering excessive depreciation in the used market because the “green premium” that once justified the sticker price is fading. The math? Buy expensive today, get less tomorrow. If you feel like your EV might be a short-term tech gadget rather than a long-term transport partner… you’re not wrong.

Why the “Everyone Loves EVs” Narrative Is, Ahem, Overcooked

The up-front cost gap still exists in many markets. Batteries are cheaper, yes, but EVs often remain more expensive than comparable petrol/diesel cars.
“Infrastructure? Sorted.” Said no one confidently. Many regions still struggle with charging access, capacity and true convenience.
The consumer? They’re asking: “Do I want only electric? Or many fuel-options please?”

Yes, some manufacturers are scaling back EV production targets because of this nuanced response.
In plain speak: When subsidies end and the novelty wears off, the hard truth hits. EVs aren’t always ready to float by themselves.

But…The EV Market Isn’t Dead. It’s Changing.

Let’s not put a flat tyre on this thing completely. Global EV sales are still up: in the first half of 2025, about 9.1 million EVs sold, up roughly 28% year-on-year.
China remains the beast: manufacturing powerhouse, subsidy machine, export king.
So yes, there is growth. But the tone? More recalibration than ramp-rush.


Used EVs: The Crash After the Flashy Launch

If you bought a Tesla a couple of years ago hoping you were hopping aboard the uninterrupted future train, well…folks, the train’s now in the station with the doors open and a “next service in five years” sign. Used Tesla values in the U.S.? They’ve fallen by about 17.2% between March 2024 and March 2025. That’s a nearly $10,000 drop on average for a used Model S.

And in the UK, things are even worse for the premium side of EVs. Pre-2024/5 Taycans have lost nearly 50% of their value, prompting dealers to hit the pause button on accepting them as trade-ins.

The “green premium” is looking far less viable and more like a “premium regret.”

Why This Is Happening (And Why It’s Hilariously Inevitable)

Subsidies and hype: Early EV buyers got the buffet. Governments co-signed the future. Now a lot of that support is fading. The party’s got quieter.
Over-supply + off-lease tsunami: Tons of EV’s are hitting the used market. More inventory = lower prices.

Depreciation by design: Luxury EVs like the Taycan were expected to hold value, but they’re tanking because everyone assumed electricity solves everything , but (especially in the UK) the lease and subsidy binge has tanked the marked and shown the market is being artificially propped up.

Enter: Other Fuels. You Know…If We’re Doing This For Real

Here’s a question: while we’re all so obsessed with plugging in, why aren’t we talking hydrogen combustion or alternative fuels more seriously? If you want to play long-game, lightweight, high-tech and future-safe, maybe EVs aren’t the only play. Fuel cell, hydrogen internal-combustion, synthetic fuels, while these are on the fringes, they might be the dark horses of the future and really need to be brought to the forefront.

We keep putting all our chips on one tech: battery electric. That’s like betting all your money on one horse just because it looks shiny and new, ignoring the jockey’s limp. Meanwhile, hydrogen or advanced combustion tech might be whispering, “Hey! What about me?”

So What Does This Mean for You (Yes, You With The Wallet)

If you bought an EV thinking “future-proof, zero fuel, hero mode,” good. Enjoy. But remember: you may also have bought “premium depreciation” and “range anxiety.”
If you’re leasing or flipping every 2-3 years, maybe that’s fine. But if you plan to keep a car for 5-10 years…ask: “Will I care about the battery in year seven? Will parts be cheap in year nine?” Because one factor that the market sees now is the next tech eclipses the previous one, so now you feel like you own last-year’s iPhone.
When subsidies fade out and new taxes get applied (and they will), prices may stiffen. For now the early adopters wear the “high cost, high depreciation” badge.

If you value choice (electric, hybrid, ICE, hydrogen) you’re not alone. Market data shows consumers want more than “only electric.”

My Verdict

Electric cars are serving a purpose in the grand scheme of things. Do I love them, no. But if anything, they do have a place in society and are legitimate forms of transport in this modern world...when everything behaves.

But the current picture? It feels like a blockbuster movie with a pause button: high growth, big promise, but when you zoom in you see patchy infrastructure, high cost, and a used market that might not be as rosy as the brochure.

If someone tells you “everything must be electric now or you’re done,” wink and ask: “What about hydrogen? What about hybrids? What about resale?”

Because although the EV story is far from over, the “unlimited subsidy, zero cost, everyone’s on board” chapter might just be hitting the credits. And if you’ve already shelled out for EV Island Prime, buckle up, the next scene could be the real test.