For the last decade, the auto industry has seen a growing demand for electric vehicles. However, it’s recently encountered hurdles that have slowed it down. Strict regulations have been enacted to freeze federal fuel economy and greenhouse gas emission standards. Sales in key markets for the vehicles slumped in the first quarter of 2020 due to the COVID-19 pandemic. Even though they continue to battle these setbacks, electric vehicles can still lead the way.
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Hurdles The Industry Has Faced in 2020
Earlier this year, the Trump administration pushed to freeze existing federal fuel economy and greenhouse gas emission standards, resulting in a more difficult transition to electric vehicles in the U.S.
Partially due to the COVID-19 pandemic, sales for these vehicles in the U.S. and China have slumped. With job losses mounting, big-ticket purchases are out of reach for several consumers. In China alone, market sales are forecasted to fall 932,000 this year, down 14% from 2019. With a lack of incentives and enthusiasm for electric vehicles, sales are expected to be hit in the United States as well.
The Dawn of the Electric Vehicle Age
While the market has faced several obstacles this year, the future of electric cars can still be a possibility.. Europe saw a 7.5% increase in electric vehicle sales, which is due to the market’s price point being close to cars that run on gasoline or diesel engines. In fact, this is made possible by the fact that several European countries are adding incentives, such as providing subsidies to automakers who build electric vehicles. As a result, manufacturers can cut more than $10,000 from their final price.
In 2017, California announced its goal of having more than 4.2 million electric vehicles on the road by 2030. The goal was proposed along with a plan that called for a mix of regulations, incentives, and investment in the electric vehicle industry. The state has recently announced its intention to ban the sale of gasoline-powered cars by 2035, emphasizing an even greater encouragement for drivers to switch to electric. If this plan goes well, other states may follow suit.
Track Electric Vehicle Regulations with Agenda Discovery
For the last decade, the electric vehicle market has grown substantially around the world. The market offers many opportunities for manufacturers and consumers, but it is up to policymakers to regulate laws that create these opportunities. Stay in the loop on these policies, contact Agenda Discovery today to track the legislation that matters to you.