Biden to push for electric vehicles to make up 40% or more of U.S. auto sales by 2030

President Joe Biden will set a new national target for the adoption of electric vehicles on Thursday, calling for them to represent 40% to 50% of all new auto sales by 2030, according to senior administration officials. The target is expected to be supported by companies such as General Motors, Ford Motor, Stellantis (formerly Fiat Chrysler) and other automakers. Executives from each of the Detroit automakers are scheduled to attend an event Thursday at the White House.

Though the president will sign an executive order, the sales target is not mandatory. Instead, the document encourages the U.S. auto industry and government to promote legislation and the adoption of electrified vehicles. The target includes zero-emission vehicles powered by fuel cells and batteries as well as plug-in hybrid models with internal combustion engines.

The Biden administration also is expected to announce proposed federal fuel economy and emission standards through the 2026 model-year that build on California’s tougher regulations, the officials said. The proposed standards are subject to a public comment period and final approval. While automakers have increasingly been supportive of EVs, they’ve been mixed on near-term fuel economy standards, as they attempt to rake in profits from traditional vehicles to fund electric models. EVs have historically been unprofitable or produce lower profit margins.

It’s unclear how many automakers will support Biden’s fuel economy standards. Automakers such as Ford, Honda Motor and Volkswagen previously agreed to California’s tougher standards, which the Trump administration adamantly opposed. The U.S. is the third-largest market for EVs in the world. While total new car sales were down by 23% in 2020 to about 14.6 million units, sales of all-electric vehicles fell by 11% to 295,000 units, according to IHS Markit.

Biden to push for electric vehicles to make up 40% or more of U.S. auto sales by 2030, CNBC, Aug 5