Source: Wall Street News
Author: Xu Lianghui
Whether to protect the environment or protect the interests of car dealers, Biden must choose.
Demand in the electric vehicle market is declining, and the Biden administration may have to slow down the pace of electric vehicle transformation.
According to media quoting relevant sources, the Biden administration is considering easing exhaust emission regulations. The purpose of the regulation is to push Americans to switch from gasoline and diesel cars to electric cars. And this potential policy change is aimed at responding to current concerns of major automobile manufacturers and trade unions. The source said:
The government will give automakers more time, and will not require automakers to rapidly increase sales of electric vehicles within the next few years; they will not require a drastic increase in electric vehicle sales until after 2030.
The background for this potential policy change is a decline in demand for electric vehicles, and companies such as Ford Motor Company cut electric vehicle production and began layoffs.
As early as the end of 2023, 3,900 US car dealers sent a letter to President Biden requesting Biden to reconsider the pace of licensing electric vehicles, citing a serious decline in demand for electric vehicles. The dealer said, “The current demand for electric vehicles cannot keep up with current regulations, which has prompted a large number of pure electric vehicles to pour into our dealerships. Electric cars are already piled up in our dealerships.”
Royal Bank of Canada analyst Tom Narayan pointed out in a recent report that the trend of slowing electric vehicle growth is far from over:
The earnings season has shown no signs so far, indicating that the slowdown in demand for electric vehicles has reached any inflection point. The negative factors for L4 driving still exist, but concerns about remaining supplier inventories may have been overexaggerated.
In the face of sluggish demand in the electric vehicle market, the effect of automobile manufacturers cutting electric vehicle production capacity is excellent. Last month, Ford sold out of electric vehicles. The main reason was that Ford cut production of the F-150 Lightning, a pure electric vehicle to achieve “the best balance between production, sales growth, and profit.”
Furthermore, the decline in demand for electric vehicles also confirms what Toyota Chairman and former CEO Akio Toyota said earlier: Electric cars will never dominate the global market; hybrid cars are the future.
Editor/Jeffy