Summary
- Carmakers are closely observing the upcoming election to determine the impact on electric vehicles
- EV sales in the US grew by 50% in 2023 and are up 10% in the first half of 2024
- The election results will determine whether EV sales will speed up or slow down
- Both Donald Trump and Kamala Harris have differing stances on EVs and climate policies
- China’s success in promoting EV technology through government intervention serves as a model for the US and the importance of staying competitive in the EV industry.
Article
The automotive industry is closely watching the upcoming U.S. presidential election to see whether Donald Trump or Kamala Harris wins, and how that may impact electric vehicles (EVs). EV sales have been growing rapidly, with a 50% increase in 2023 and a 10% increase in the first half of 2024. However, the future growth of EV sales may either accelerate or slow down depending on the policies of the next president.
Historically, leaders have had a significant impact on technology, fuel, and manufacturing. For example, the rapid rise of coal as a household fuel in the 19th century demonstrates the importance of commitment to driving industry transformation. In the case of the auto industry and EVs, this commitment relies on marketing, innovation, and government incentives and requirements. As the industry awaits the election results, the outcome will likely shape the future of EVs in the U.S.
When it comes to the two presidential candidates, Donald Trump and Kamala Harris, their stances on EVs and climate policies are essential factors to consider. Trump has shown little support for climate-friendly policies and is expected to cancel tax incentives for EVs. On the other hand, Harris has a stronger stance on climate issues and is likely to support policies that encourage the production of EVs as part of an overall climate policy. Her support for federal grants for clean school buses indicates a clear backing of EVs.
The passing of the Inflation Reduction Act (IRA) in 2023, with Harris casting the deciding vote, signaled government support for expanding the sales and manufacturing of EVs in the U.S. However, the requirement that tax credits be applied only to vehicles produced in North America created challenges for American consumers. Trump has vowed to reverse these policies and believes that the EV industry would cost U.S. jobs, despite evidence showing the creation of clean energy jobs and new factories.
China’s success in promoting EV technology through government intervention demonstrates the impact of well-targeted policies. By investing in EVs and renewable energy, China has made significant strides in advancing these technologies. Comparatively, Trump’s opposition to EV investments may hinder the U.S. in the race with China. As the momentum towards renewable energy and EVs grows globally, falling behind in this race could have long-term consequences for the U.S. auto industry.
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