"Mandatory Sale of 2 out of 3 Cars as Electric Vehicles"... Stricter US Environmental Regulations Than IRA Are Coming

NYT "US Electric Vehicle Share 67% by 2032"
Forcing EV Sales by Emission Levels of Each Manufacturer

The U.S. administration has decided to increase the share of electric vehicles (EVs) to 67% of new cars sold by 2032 to address environmental issues such as emissions and climate change, according to local media including The New York Times (NYT). This far exceeds the '50% EV share by 2030' pledge made by President Biden when he took office in 2021.

Local media cited multiple officials on the 9th (local time) reporting that the U.S. Environmental Protection Agency (EPA) will soon announce carbon emission regulations for passenger cars and light trucks that include this target. While the Inflation Reduction Act (IRA), implemented last year to combat climate change, offered incentives as a 'carrot' to increase EV adoption, this new measure is closer to a 'stick' with strict regulations.

U.S. President Joe Biden is stepping down after test-driving a Chevrolet electric pickup truck at the Detroit Auto Show in September last year. Next to him is Mary Barra, Chairwoman of General Motors.

The regulation does not specify the number or share of EV sales directly but limits the total emissions of all vehicles sold between 2027 and 2032, effectively forcing two-thirds of all vehicles sold by 2032 to be electric.

Although the U.S. is home to Tesla, the world's largest EV manufacturer, its EV adoption rate is somewhat slower compared to other major markets like Europe and China. Last year, EVs accounted for only about 5% of all vehicles sold. This share must increase more than thirteenfold over the next decade. Many had anticipated that even President Biden’s pledged target would be challenging, but the administration has decided to enforce an even more ambitious standard.

The NYT described it as "America’s most ambitious climate regulation," noting that it poses a significant challenge to automakers, many of whom have already made substantial investments but few have reached this level yet.

An electric vehicle charger in a certain area of California, USA, is out of order.

The transportation sector, including automobiles, ranks as the second-largest source of carbon emissions globally and the largest in the U.S. Accelerating EV adoption is seen as an effective way to achieve visible results. Major automakers have been speeding up electrification in response to environmental regulations in key markets such as Europe. However, each company pursues slightly different strategies based on their interests.

The newspaper also noted that the proposed plan could change during the public comment period before finalization or as the country faces the presidential election next year.

Tesla CEO Elon Musk is speaking at the opening ceremony of the Tesla Gigafactory in Germany last year. Tesla, the world's largest electric vehicle manufacturer, has built additional factories in China, Germany, and other countries besides the United States.