According to Bloomberg, the slowdown in the popularity of electric vehicles in the United States may further intensify as the next U.S. President Donald Trump promised to abolish the electric vehicle tax credit policy.
Automotive forecaster GlobalData has lowered its forecast for the U.S. electric vehicle market share in 2030 from 33% to 28%.
Image source: Tesla, Jeff Schuster, vice president of automotive research at GlobalData, said in a report: “Under the Trump administration, the United States ‘transition to electric vehicles will be hindered.
” He said Trump’s focus on lowering oil prices and relaxing exhaust emission standards could reduce the market share of electric vehicles by “15% to 20%.
” Currently, automakers have invested billions of dollars in battery and electric vehicle factories to launch more electric vehicles.
According to U.S. regulations on vehicle efficiency and exhaust emissions, the requirements for electric vehicle models will become increasingly high.
However, Mark Wakefield, global head of the automotive industry at consulting firm AlixPartners, said approximately $129 billion worth of electric vehicle investments in North America are “at risk” before 2027.
The $7500 tax credit available to consumers buying electric vehicles made in North America may also be at risk.
, Mark Wakefield said: “The electric vehicle market will definitely be much smaller in five years.
The number of electric vehicles produced by the factory will decline in the long term.
Automakers will continue to slow investment in electric vehicles and delay or cancel the release of new all-electric models.
“, Automakers will also seek to increase production of more profitable gasoline models while transforming electric vehicle factories into production facilities that can also produce gasoline-electric hybrid vehicles.
For example, Volkswagen Group is renovating its new $2 billion electric vehicle factory in South Carolina, USA.
, Mark Wakefield said: “From a profitability perspective, this is a challenge because many of the current industry plans for electric vehicles assume production that falls short of expectations.
As a result, some factories may be transformed into hybrid vehicle factories to produce both hybrid vehicles and pure electric vehicles, rather than just pure electric vehicles.
” However, Trump will also face difficulties in actually overturning the Inflation Reduction Act, which has fueled a boom in electric car and battery factories, many of which are in Republican-leaning states.
Mark Wakefield said fuel economy regulations are likely to change even more in comparison.
Trump relaxed fuel economy regulations during his first term and promised to eliminate what he called the “electric vehicle mandatory regulations” on the first day of his second term, but changing these policies will take a long process and may take months or even years.
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