Report: U.S. Auto Industry Is Looking to the Government for More EV Support

author: Vineeth Joel Patel   

Automakers in the U.S. are in a tricky position. While they have to continue coming out with electric vehicles because of emissions and upcoming bans on the sale of new gasoline-powered vehicles, they're conflicted. Unlike other countries, the U.S. lacks an appropriate infrastructure to support the mass adoption of EVs and doesn't have any extraordinary incentives for consumers. Add the high price of electric cars into the mix, and it's easy to see why consumers aren't trading in their current vehicles for the latest EVs.


Automakers Need Help


According to CNBC, the Alliance for Automotive Innovation, a leading lobbying group for the U.S. auto industry is looking to change that. The group is reportedly calling on policymakers to help support the adoption of EVs in the country. The lobbying group wants policymakers to introduce regulations that would create more incentives for EVs and bring in more infrastructure investment. 


The lobbying group stated that now is the time for "substantial, long-term investments in electrification, as well as advanced safety technologies," in a new report posted earlier this month. The document claims the automotive industry is "on the cusp of a transformative moment," regarding electric and autonomous vehicles.


Alliance for Automotive Innovation's report and request for more government regulations to help EVs become more mainstream comes shortly after the Electoral College officially voted to secure President-elect Joe Biden's victory over incumbent President Donald Trump. Obviously, this isn't just a coincidence. President-elect Biden has been vocal about his support for electric vehicles, which has caused some automakers to change their stance on fuel economy regulations in the country.


More Incentives Are Required


EV incentives are one thing that automakers have been asking the current administration to expand for years. Unfortunately, it hasn't happened yet. The federal government currently offers up to $7,500 in tax credits for consumers that purchase an eligible electrified vehicle. Those tax credits are only available to an automaker for the first 200,000 units (across an entire lineup) before a phase-out period begins. Both General Motors and Tesla have hit the 200,000-vehicle mark, which means that consumers aren't eligible for any tax credit with a purchase.


Obviously, not having any available credits for consumers to take advantage of greatly diminishes the appeal of their EVs. This is especially true for Tesla, which continues to have some of the most expensive electric cars on the market. While Tesla's sales are excellent, we're sure the automaker would sell more vehicles if its vehicles were available with some kind of incentive.


It's not even about federal tax credits. Sweden, which has some of the highest rates of EV ownership in the world, offers incentives on charging, parking, and adding a charger to a home. It's worked in other countries and there's no reason why it wouldn't work in the U.S.; adding more incentives, whether they make EV ownership more convenient or affordable, work

Vineeth Joel Patel

Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods