Vermont auto sales drop as federal tariffs affect vehicle market dynamics

The Vermont House Transportation Committee meeting on May 8, 2025, focused on the current state of vehicle sales in the state, particularly in light of recent federal tariff policies and electric vehicle (EV) mandates. Matt Coda, representing the Vermont BMW Distributors Association, provided an update on vehicle sales trends, revealing a notable decline in both new and used vehicle registrations in Vermont compared to the previous year.

Coda reported that while the national market experienced an 8% increase in new car sales in April, Vermont's sales did not follow suit, with a 13% decrease in new vehicle registrations for the first four months of 2025 compared to the same period in 2024. He attributed this disparity to a strong sales performance in January 2024, which skewed year-over-year comparisons. The committee discussed the impact of tariffs on vehicle pricing and availability, noting that these tariffs could add significant costs to vehicles, potentially affecting consumer purchasing decisions.

The discussion also highlighted the challenges facing the state's EV goals. Coda indicated that Vermont is unlikely to meet the mandated target of 35% of new vehicle sales being battery electric or plug-in hybrid vehicles by 2026. Current projections suggest that the state may only reach 12.5% by the end of the year, raising concerns about compliance with climate policies and the potential repercussions for local auto dealers.

The committee members expressed concerns about the implications of these trends for Vermont's transportation infrastructure and the economic health of local dealerships. Coda emphasized the need for more affordable EV options and improved charging infrastructure to drive sales, particularly for consumers who may not have access to home charging solutions.

In conclusion, the meeting underscored the complexities of the automotive market in Vermont, particularly in the context of federal policies and local economic conditions. The committee plans to continue monitoring these trends as they develop, recognizing the significant impact on both the environment and the state's transportation funding.