Industry consultant: Vermont vehicle sales slipped in 2025; dealers invest in EV charging despite weak near-term returns

Matt Coda, a consultant with Meadow Hill representing dealer and industry groups, told the House Transportation Committee on Feb. 11 that Vermont vehicle registrations and sales weakened in 2025 compared with 2024, and that dealers have been investing in electric-vehicle charging even as returns remain uncertain.

"2025 was not as good as 2024," Coda said, summarizing year-over-year figures showing used vehicle sales down about 11% and new vehicle sales down about 8% for the 12 months ending in 2025. He said conventional hybrids (HEVs) were the only major powertrain to gain market share over the prior year.

Coda said the figures his team presented are drawn from a contract with Experian and therefore reflect vehicles purchased and registered in Vermont. "It could have been purchased in Florida and registered in Vermont," he said, noting registration-based metrics are consistent but can include out-of-state purchases that end up recorded in Vermont.

Committee members asked whether the decline reflected fewer cars on the road or simply fewer inspections and registrations. Coda said inspections have dropped roughly 16%, about 100,000 fewer inspections, and that auditors are still examining whether that maps to a matching drop in registrations.

The briefing also focused on electric vehicles. Coda said BEV sales fell more sharply in January 2026 than other powertrains and that, for the month, PEV/PHEV counts were very low. He told members that nearly three-quarters of new-car dealers have partnered with programs such as Drive Electric and Efficiency Vermont to receive consulting or rebate funds for charging infrastructure.

"Nearly $15,000,000 the last couple of years have been invested in just upgrades to the facilities in Vermont in order to accommodate electric vehicles," Coda said, adding that dealers vary in whether they make chargers available to the public, restrict access to customers, or put chargers behind a paywall.

Coda warned many dealers who invested in charging infrastructure have not yet recouped their costs, citing a national study. Committee members pressed about warranty terms and service revenue as EVs change maintenance needs; Coda said warranty coverage and maintenance patterns vary by manufacturer and model, and some service work (tires, brakes, inspections) remains steady.

On fuel and taxation, Coda summarized how Vermont tracks fuel volumes and collects taxes. He said the combined state and federal excise and assessment charges amount to roughly $0.50 per gallon on gasoline and about $0.5564 per gallon on diesel. He noted the state-level tracking registers roughly 280 million gallons sold annually but cannot determine exactly where each gallon is dispensed, complicating proposals for town- or county-level taxes on fuel consumption.

Committee members raised the question of local-option taxes and how other states handle sub-state fuel levies; Coda said New York, for example, has county-level gas taxes but municipal pump-level taxes would require new tax types or statutory changes. He also identified the Department of Environmental Conservation tank program (contact: Anna Borikowski) as the division that inspects underground tanks and noted pending legislation to adjust petroleum-fund deductibles for large versus small tank owners.

The committee thanked Coda and requested follow-up slides and data on leasing and 2026 trends. No formal committee votes or actions were taken at the close of the briefing.