US government’s proposal to boost EV sales is challenging
The US government plans to change auto emissions standards so that automakers have to sell more electric vehicles. In 2032, electric vehicles will need to make up about two-thirds of all new cars sold in the United States.
Moody’s industry analyst Matthias Heck estimates that electric vehicles will reach that kind of market share sometime after 2035 if these requirements are not met. While the EPA’s goals are manageable, they won’t be easy and will require a lot of investment. Heck pointed out that the proposal is still just that, a proposal, and could well change before being finalized.
Things will change a lot over the next decade, including charging infrastructure and vehicles themselves. Battery technology will improve and prices will fall, attracting more consumers to electric vehicles. In addition, government incentives, such as those under the new Inflation Reduction Act, will help.
Nearly a decade from now, electric vehicles will be very different from what’s available today, said Chris Harto, Consumer Reports’ policy analyst for transportation and energy. Even with EV market share reaching two-thirds, EVs won’t flood American roads overnight, he said. The majority of cars on the road in 2032 will still be gas-powered, he said, but shopping for a new vehicle will be different.
“We’re talking about past cost parity, so it will be the same price or cheaper than a gas-powered car,” he explained.