Electric Vehicle Transition in US slows as Initial Momentum Fades
WASHINGTON D.C. – The enterprising push for a rapid transition to electric vehicles (EVs) in the United States is losing steam, with automakers scaling back plans and growth forecasts being considerably revised downward. Initial promises of a swift shift, fueled by government incentives and manufacturer commitments, are giving way to a more cautious outlook.
At the start of the Biden administration, General Motors, Ford, and Stellantis pledged a substantial move towards electric vehicle production. GM specifically announced a goal to end production of cars with internal combustion engines by 2035.This transformation was supported by congressional tax relief measures and a $7.5 billion package intended to build out a national charging infrastructure.
Though, the current reality paints a different picture. Automakers are now tempering their EV plans,tax credits are expiring,and the Trump administration has paused work on charging infrastructure projects.
“Sales of electric vehicles will grow more slowly than expected,” states Robby DeGraff, an analyst at Autopacific. Last year, DeGraff predicted that fully electric vehicles would account for 25% of US car sales by 2029. He has as lowered that estimate to 12%.For context, approximately 5.5% of newly sold cars in the Czech Republic are electric.
The slowdown in demand carries potential consequences for climate policy. Transportation accounts for roughly 30% of greenhouse gas emissions in the US. Experts caution that a slower transition to EVs could lead to an increase of over 8 million gasoline-powered vehicles on the road, hindering efforts to achieve a 61% reduction in emissions by 2030 compared to 2005 levels.Tyson Yomina of JD Power points to the impact of Washington’s current trade policies, explaining, “The margins of electric vehicles were already so low.the new duties on imported parts are even more reduced.”
While federal tax credits are expiring, the number of public charging stations has more than doubled since 2021, despite delays in the implementation of the federal plan.
Analysts agree that the EV market in the US is not collapsing, but is entering a period of slower, more uncertain growth. “Electric vehicles are not dead,” DeGraff concludes. “It’s just a longer way than we thought a few years ago.”
