Former US President Donald Trump plans to stop electric car sales if re-elected, reversing Biden’s climate policies. Automakers worry about the impact on investments and job growth in key states. The EV market’s rapid growth may face challenges but is unlikely to halt entirely.
Electric Car Future in Jeopardy? Trump’s Controversial Plans Unveiled
Key Highlights
- Trump plans to stop electric car sales if re-elected.
- Automakers express concern over potential policy reversals.
- Significant investments in EVs at risk with Trump’s proposed changes.
New Delhi: Former US President Donald Trump announces plans to stop electric car sales if re-elected, threatening to reverse Biden’s climate policies and EV incentives. The proposal faces opposition from automakers and could impact jobs and investments in key states.
Former United States President Donald Trump, currently facing 34 felony counts, has announced plans to stop electric car sales if re-elected. Trump’s proposal includes reversing Biden administration climate policies, rolling back tailpipe emissions targets, and slashing EV tax credits. This announcement, reported by various sources, including the New York Times, has raised concerns within the automotive industry and among political analysts.
Trump’s Stance on Electric Vehicles
Trump, who has previously dismissed scientific evidence of climate change as a “hoax,” is now targeting the electric vehicle (EV) industry. He has called on oil and gas executives to support his campaign financially in exchange for policy reversals. If elected, Trump plans to significantly reduce EV tax credits and emissions targets, measures that have been crucial for the growth of the EV market.
Industry Response
Automakers have expressed concerns about Trump’s plans. William Clay Ford Jr., executive chair of Ford Motor, highlighted the challenges of fluctuating political decisions on long-term company strategies. “Our time frame as a company, our planning time frame, is a lot longer than election cycles,” Ford said at a recent event. “When we’re whipsawed back and forth by politicians that becomes really difficult for us.”
Current US EV Market Dynamics
The EV market has seen significant growth since Trump’s presidency in 2016. In 2016, only 159,139 electric vehicles were sold in the US. By 2024, this number is expected to exceed 1.5 million. This growth has been driven by increased consumer adoption and significant investments from automakers and related industries.
Impact on Investments and Jobs
President Biden’s Inflation Reduction Act has spurred substantial investments in EV manufacturing. Hyundai, for example, is investing $13 billion (approximately ₹1,08,080 crore) in electric vehicle production in Georgia, a state Trump narrowly lost in 2020. Rolling back these policies could threaten jobs and investments in key states, impacting blue-collar American workers.
Key Investments in EV Manufacturing
| Company | Investment Amount | Location | Job Creation |
|---|---|---|---|
| Hyundai | $13 billion (₹1,08,080 crore) | Georgia | 12,000 jobs |
| SK On | $5 billion (₹41,515 crore) | Georgia | Not specified |
Potential Legislative Changes
If Republicans gain control of Congress, a Trump administration could work to rescind parts of the 2022 Inflation Reduction Act. This act provides at least $370 billion (approximately ₹30,69,710 crore) in tax credits for clean energy and EV manufacturing. However, these changes could face resistance from within the industry.
Challenges and Future Outlook
Trump’s plans may slow the growth of the EV market but are unlikely to halt it entirely. Investments in EV infrastructure, such as charging stations and battery manufacturing, continue to grow. States like Texas and Florida are seeing significant demand for electric vehicles, driven by both Republican and Democrat consumers.
