The approach of the United States to electric vehicles
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The approach of the United States to electric vehicles
 

Overview

A major setback was faced by the car industry last year due to the global coronavirus pandemic which resulted in a dip of 16% in sales. According to 2019, the sales of electric vehicles in the USA stand at 3,20,000, making it the third-highest globally, followed by China and Europe. The total sales of Battery based electric vehicles account for 73%on the other hand plug-in-hybrid chargers stand at a total cost of 27%.

What is Happening?

USA President Joe Biden on Thursday announced a policy change in which he wished to slash the high emittance of greenhouse gases by achieving the goal of selling electric vehicles by 2030. This move is supported by the USA government, backing the automakers.

"The biggest thing that’s happening here is there’s a realization, on the part of both labor and business now, that this is the future. We can’t sit by," Biden told reporters at the White House.

Highlights of the announcement

  1. The actions are a part of Biden’s action plan to fight climate change.
  2. General Motors Co (GM.N), Ford Motor Co (F.N), and Chrysler parent Stellantis NV (STLA.MI) said in a joint statement they aspired "to achieve sales of 40-50% of annual U.S. volumes of electric vehicles by 2030."
  3. The goal includes installing battery electric, fuel cell, and plug-in hybrids that have a gasoline engine.
  4. The President after signing the executive order with UAW(United Autoworkers)took a ride in his electric vehicle jeep.
  5. The executive order sets a deadline for light-duty vehicles by 2030 and for heavier motors by 2027.

Why this move?

The USA, the world's oldest Democracy is lagging behind China and Europe in the production and uptake of electric vehicles, according to a study conducted by the International Council on Clean Transport.

“Electric vehicle manufacturing growth happens where there are strong national policies designed to spur the market forward,” Nic Lutsey, program director at ICCT, said in a statement. “Hundreds of billions of dollars are on the table, and the United States hasn’t even bothered to pull up a chair.”

From 2010 through 2020, China produced 44% electric vehicles while Europe manufactured 25% global electric vehicles.

Closing

In the interim, the USA government made some vehicle effective norms which were moved back under previous President Donald Trump. Also, government electric vehicle buying impetuses started eliminating automakers with the most effective volume of electric vehicle deals, like Tesla and GM.
Another bipartisan framework plan in the USA incorporates $15 billion toward electric-vehicle framework, electric transports, and travel — a negligible part of President Joe Biden's prior proposition to burn through $174 billion on boosting the EV market.

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