08 August 2025
Have incentives affected registration results in two big European new-car markets? How are US tariffs impacting carmaker forecasts? Which company is buying up Northvolt? Autovista24 editor Tom Geggus presents the latest Automotive Update.
In this week’s episode, special content editor Phil Curry talks about battery-electric vehicle (BEV) incentives in the UK. Then, Geggus explores the latest new-car registration figures in Germany. Finally, a US battery manufacturer is acquiring Northvolt, but what exactly has been bought?
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UK incentives prove difficult
In July, the UK government introduced incentives for BEV purchases. The new subsidies offer £3,750 (€4,324) for the most sustainable models, and £1,500 for those with lower green credentials. However, it could be difficult for carmakers to achieve a placing in the top band for discounts.
According to the Independent, to qualify for the incentive scheme, manufacturers must have committed to a science-based target on emissions. They also need a pledge to cut greenhouse gas emissions in line with the Paris Agreement on climate change.
Funding is based on the carbon emissions of the country where key production stages are located. These include vehicle assembly, where the powertrain is introduced, and the battery production location.
At the time of writing, only four models from Citroen have been awarded the lower level of funding. It appears that achieving the maximum discount amount will prove difficult.
The incentives were introduced too late to impact UK registrations in July, which were down by 5% year on year. BEV deliveries grew by 9.1%, although this was their second-smallest improvement so far in 2025.
German BEV market bouncing back?
July was the first time since April 2024 that the German new-car market recorded double-digit year-on-year growth. 264,802 models took to the roads, registrations were up by 11.1%.
BEV registrations rose by 58% in July to 48,614 units. The technology captured an 18.4% share last month, up from a 12.9% market hold in July 2024.
The country also has a new incentives scheme in place. This offers tax breaks for corporate BEV purchases from July 2025 to December 2027. This means private buyers and lessees do not benefit from the plans.
The incentives seem to have had little impact in July, with the market returning to buoyancy following a difficult 2023. Last year, the market appeared to be struggling with comparisons set against a much stronger 2023, when incentives were active.
Comparing last month’s BEV figures with July 2023 deliveries, the all-electric market dropped by just 0.1%. In the first seven months of 2025, BEVs were up by 10.6% on the same period two years ago.
German automotive bodies highlighted that growth has been bolstered by a greater availability of models across the volume segments. Therefore, incentives do not appear to be a key driver of BEV growth at present.
Tariff impact on financial results
The latest round of carmaker quarterly financial results has revealed the impact US tariffs. The automotive industry took an $11.8 billion (€10.1 billion) hit in the first half of 2025, according to the Wall Street Journal.
Toyota estimates a ¥1.4 trillion (€8.1 billion) tariff impact on its operating income through its current financial year. Meanwhile, General Motors expects the situation to worsen in the third quarter, Reuters reported. It committed to previous estimates that trade headwinds will hit its bottom line by up to $5 billion this year.
Stellantis estimates a 2025 net tariff impact of approximately €1.5 billion. Ford now anticipates full-year adjusted EBIT of $6.5 billion to $7.5 billion, which includes a net tariff-related headwind of around $2 billion.
Lyten buys Northvolt
US battery maker Lyten has entered into a binding agreement to acquire Northvolt’s remaining assets in Sweden and Germany.
The deal includes Northvolt Ett and Ett Expansion, as well as Northvolt Labs in Sweden and Northvolt Drei in Germany. Lyten is also acquiring all of Northvolt’s remaining intellectual property. Multiple members of the executive team also plan to join the US firm.
Lyten’s newly acquired assets are valued at approximately $5 billion. Lyten is also pursuing the acquisition of Northvolt Six in Canada, which is constructing a 15GWh phase one battery manufacturing facility.
