“What we’re seeing is the pace of EV growth is faster than the rate of publicly available charger growth,” says John Bozzella, chief executive of US auto trade group the Alliance for Automotive Innovation.
Two strategies
Many global carmakers are making big investments in US manufacturing plants, in response to the government’s incentives. But in the light of slowing EV sales growth they are shifting that investment towards hybrid vehicles, which use battery power alongside a traditional engine.
Last month, executives from GM, Nissan, Hyundai, Volkswagen and Ford all said that tapping into demand for hybrids was a priority. Ford chief executive Jim Farley told investors at a conference “we should stop talking about [hybrids] as a transitional technology,” viewing it instead as a viable long-term option.
Hyundai said it was considering making hybrids at its new $7.6 billion plant in Georgia. US competitor GM said in January that it would reintroduce plug-in hybrid technology to its range, though chief executive Mary Barra recently affirmed she still saw EVs as the future.
Bozzella says that even with the tariff protection measures and US subsidies in place, he was unsure how long it would take for the US auto industry to produce EVs that could compete with heavily subsidized Chinese vehicles on pricing.
“There is no question that EVs built in the US now, and built by American companies now, are absolutely competitive with EVs around the world,” he says, citing Tesla.
“If what you mean is competitive at price points . . . well that’s a different matter entirely, and my answer to that is: I’m not sure.”
Van Jackson, previously an official in the Obama administration and now a senior lecturer in international relations at Victoria University of Wellington in New Zealand, says electric cars still need to fall in price if the market is to grow substantially.
“How do you bring workers along and increase their wages, and have a growth market for these products, given how expensive they are?” he asks. “I’m an upper-middle-class person and I cannot afford an EV.”
He is skeptical about whether shutting the world’s dominant producer of EVs and related componentry out of the US market will reduce the price of the cars and encourage uptake.
“The tariffs are buying time,” he says. “But towards no particular end.”
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