US Auto Lobby Group Calls on More Government Support for Electric Vehicles
As the hype surrounding electric and autonomous vehicles continues to accelerate, a major lobby group for the US auto industry is calling on the country’s policy makers to initiate additional supports in the transition towards electric vehicles.
In a report released on Tuesday, the Alliance for Automotive Innovation is drawing attention to the electric and autonomous vehicle market, which is currently “on the cusp of a transformative moment,” and is in dire need of further long-term investments. Although the report does not outline a specific monetary value, it does call on additional support for companies and consumers in the form of infrastructure investments and incentives for purchasing EVs.
As of current, there is up to $7,500 worth of tax credits that the federal government makes available to consumers who purchase an electric vehicle, but automakers cannot sell more than 200,000 units before the incentive is phased out. Thus, some of the suggestions also include ramping up investments in EV manufacturing and research and development, while also urging policymakers to modernize regulations to better support technologies that enable self-driving vehicles.
However, with the new incoming Biden administration, there will likely be more support directed towards the EV industry. Throughout the election, Biden had promised a $400 billion public investment towards clean energy, which also includes electric vehicles and battery technologies. Biden’s climate plan also promises to introduce 500,000 new electric vehicle charging stations across the US before the end of 2030.
The Alliance for Automotive Innovation represents US auto manufacturers that account for almost 99% of all cars and light duty trucks sold in the country. However, according to the lobby group’s website, Tesla is not part of the alliance.
Information for this briefing was found via the Alliance for Automotive Innovation and the IEA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.