Several states have announced their electrification measures by setting targets to ban the sale of new vehicles with internal combustion engines. This was reinforced by the steps of the federal government to provide incentives such as new tax credits.
A report from BloombergNEF estimates that electric vehicle sales will account for 43 percent of new cars purchased by 2030. This could be achieved due to the availability of a wider choice of electric vehicle models and increasing consumer acceptance of electric cars. To note, some have mostly announced their electrification targets.
The US government’s move to pass the Inflation Reduction Act in August this year boosted the 2030 forecast to 52 percent. The US government is targeting half of all cars to be electric, plug-in hybrid or fuel cell-powered by the end of the decade.
BloombergNEF analysts say EV sales may not rise significantly in the next few years. This is because the new tax credit rules mean the full $7,500 relief is only open to vehicles built in North America, and there are restrictions on where the batteries are sourced.
But many automakers are expected to meet the challenge by qualifying for financial aid that makes EVs more affordable. Hyundai, for example, is already planning to set up production facilities in the United States that will enable them to meet the requirements of the tax credit.
Sales of electric vehicles in America are expected to grow massively as the next decade approaches the middle as laws in many states begin to prohibit the sale of combustion cars.
One such state is California, which has passed a law requiring new cars sold there by 2035 not to produce exhaust emissions.
New York follows California to end gas vehicle sales by 2035
