Transportation Market Conditions Present Questions About the Future
The transportation market continues to evolve for a variety of reasons, including economics, policy and consumer sentiment. There is no confusion that U.S. policy as it relates to the transportation sector and the environment has changed significantly in the first six months of 2025. Congress has voted to repeal EPA’s waiver that granted California the authority to ban combustion vehicle sales in 2035, tax credits for the purchase of electric vehicles will sunset on September 30, 2025, EPA is preparing to reverse its endangerment finding for greenhouse gases, NEVI funds for charging infrastructure have been stopped, federal policy support for domestic fossil fuel production has increased, and trade relations with long-term friends have been thrown into a blender. Meanwhile, key economic indicators for transportation energy have improved for consumers, yet their feelings about the economy and transportation are not very optimistic. For much of this, the overall implications for the transportation market will not be realized for some time, but at the half-way point of 2025 it is worth looking at where the market is so we can better monitor how it develops over the next six months and beyond.