The Biden administration wants electric vehicles to account for 50 per cent of all new car sales in the United States by the end of the decade. Based on current sales data, the country has a long way to go.
A report from ING Research indicates that electric vehicles will account for 4 per cent of new vehicle sales in the U.S. in 2021. The fleet of EVs in the U.S. has grown at an annual rate of 28 per cent between 2015 and 2020 and is lagging behind Europe and China.
In China, 9 per cent of 2021 car sales will be for EVs while in Europe they will account for 14 per cent of sales. The average annual growth rate in China currently sits at 51 per cent while in Europe it sits at 41 per cent, The Guardian reports.
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A number of reasons can explain why the U.S. is falling behind. ING’s reports says cheap gasoline prices in the U.S., a lack of federal government support for EVs, and insufficient charging infrastructure are impacting potential EV sales.
“What happened is that Europe set new carbon dioxide limits for cars while Donald Trump took the US backwards,” former vehicle regulation chief at the Environmental Protection Agency, Margo Oge, said. “The policies of the Trump administration are reflecting the US being behind. But the US can catch up if it does the right things.”
President Biden is making EV sales a priority and hopes to boost sales through the $1.75 trillion reconciliation bill that could include tax credits of up to $12,500 for certain electric vehicles made at union factories. The Biden administration will also spends billions on installing 500,000 electric vehicle chargers across the U.S.
The EPA is also readying new regulations that will introduce more stringent fuel efficiency standards for new cars.
