The Biden administration is reportedly planning to ease restrictions on tailpipe emissions in a bid to encourage a transition from petrol cars to electric vehicles, according to the New York Times.
This move, as outlined by sources familiar with the plan, involves granting car manufacturers more time rather than insisting on rapid increases in electric vehicle sales over the next few years.
The anticipated rule change could be announced as early as spring.
Under the proposed shift, the pressure for significant growth in electric vehicle sales would be deferred until after 2030.
John Bozzella, the president and CEO of the Alliance for Automotive Innovation (AAI), emphasised the importance of the next three to four years for the development of the electric vehicle market.
He advocated for allowing the market and supply chains to catch up, maintaining consumer choice, expanding public charging infrastructure, and leveraging industrial credits and incentives to facilitate the transition.
Previously, Reuters indicated that the White House could implement Environmental Protection Agency regulations in March, aiming for substantial reductions in tailpipe emissions.
The administration’s plan aims to increase the U.S. electric vehicle market share to 67% by 2032, up from less than 8% in 2023.
However, General Motors, Ford, and Stellantis have expressed concerns about the rapid transition, particularly regarding their predominantly truck-heavy fleets in the United States.
Analysis of automakers’ sales data and their communications with regulators underscored their challenges in achieving profitability amidst such swift changes.
Automakers, alongside the Alliance for Automotive Innovation, have urged the Biden administration to reconsider the proposed escalation in electric vehicle sales.
They argue that current electric vehicle technology remains prohibitively expensive for many mainstream American consumers, and more time is necessary to establish adequate charging infrastructure.