The ambitious plan put forth by the US government to increase sales of electric vehicles (EV) is a challenge, but it is by no means insurmountable. We’ll examine the proposed modifications to auto emissions rules and their potential effects on the EV market in this post. We’ll also look at how the EV market is changing, including government incentives, infrastructural upgrades, and shifting customer attitudes.
Changes to the Proposed Emission Standards
The US government is working to change auto emissions regulations and has given the spread of electric vehicles a lot of consideration. The target is for Electric Vehicles to account for around two-thirds of all new automobiles sold in the US by 2032. According to Matthias Heck, an industry analyst for Moody’s, obtaining this market share by 2035 is feasible but would require significant investments. It’s important to remember that this idea is still in the early stages and might be changed before it is accepted.
The EV environment will change significantly during the next ten years. These modifications will include enhancements to the battery technology, charging infrastructure, and cost. Government incentives, like those mentioned in the new Inflation Reduction Act, will encourage people to adopt EVs even more. Policy expert Chris Harto believes that EVs will eventually reach cost parity with gas-powered cars, making them a desirable option for future auto consumers.
Modernization of Electric Vehicles Technology
EVs will see considerable advances as 2032 approaches. The future of batteries promises longer driving distances and quicker charging periods. According to Moody’s Heck, the next generation of electric vehicle batteries will have a 30% increase in range on a single charge and a 30% increase in recharging speed. These developments, when coupled with enhanced charging infrastructure, will make EVs a desirable option for shoppers looking for affordability and efficiency.
Vice President of JD Power’s electric car practice Elizabeth Krear emphasizes the expanding selection of EV models. In the US market, EV alternatives are currently offered for about 40% of gas vehicle models. According to Krear, market share has already risen to 27% by 2026, and “EV equivalents” will be available for 75% of the vehicles that people shop for. The two-thirds market share goal can be reached even earlier than 2032 in jurisdictions with higher EV adoption rates, like California.
California is the Front-Runner
California has been a leader in the use of electric vehicles. By 2035, the state intends to only allow the sale of completely electric and plug-in hybrid vehicles, a goal it is aggressively working toward. By 2032, California will have a market share of more than 80% for plug-in vehicles, including plug-in hybrids, thanks to this commitment. The timescale for widespread EV adoption is accelerated by California’s impact on the entire nation.
It is not assured that EV market share will reach two-thirds by 2032, but a number of variables make it likely. A key factor is the multiple automakers’ entry into the EV market, together with consumer brand loyalty. To satisfy their devoted client bases, automakers like Toyota, Honda, and General Motors are making progress with the introduction of EV cars. By 2035, General Motors specifically wants to only provide electric passenger vehicles, paving the way for a massive industry revolution.
Major automakers’ representative organization, the Alliance for Automotive Innovation, has expressed caution regarding the lofty Electric Vehicles ambitions and is looking for government agencies’ assistance. The industry understands that many factors must come together for this change to be successful, given its complexity and unparalleled nature.
The US government’s plan to hasten Electric Vehicles adoption is a challenging but doable project. The target of obtaining a two-thirds market share for EVs by 2032 is attainable because to technological breakthroughs, an increase in the number of model options, and supportive governmental regulations. However, it necessitates cooperation from all parties involved, including legislators, customers, and automakers.
Read Also: The resurgence of the US Dollar on the global market
