US companies push ahead with EVs despite uncertain support structure

While the US lags China in the sale of electric vehicles, the world's second-largest auto market still represents a potentially rich opportunity as American companies pour billions of dollars into vehicle development.

In 2016, electric vehicle (EV) sales in the US totaled 159,139, representing a 37 percent increase over 2015, according to the web site Inside EVs. The US results came amid low gasoline prices and a cloudy outlook for government support and mileage standards that drive demand.

While China invests in building public charging stations and exempting cars from taxes of $6,000-$10,000, the US tax break of up to $7,500 for each vehicle faces an uncertain future, and the Trump administration may ease mileage requirements for automakers. There are only about 41,000 charging stations in the US.

Still US EV sales have grown at a 32 percent compound annual growth rate over the past four years. Led by the Tesla Model S and the Chevy Volt, US EV sales soared 59 percent in January over the year-ago period.

While all-electric vehicles account for less than 1 percent of new US car sales, the Energy Information Administration expects annual sales topping 1.2 million cars by 2025.

Dan Sperling, founding director of the University of California Davis Institute for Transportation Studies, told the Detroit Free Press last year that "the (auto) industry has made a massive investment in electric vehicles. While some would prefer to slow it down, most companies are going to continue along that path."

Still, the potential loss of federal tax credits could be troublesome for EVs in the US. Online auto research firm Edmunds said in a report that "without these credits, this market is likely to crash."

Even so, US auto companies remain committed to EV development. Late last year, General Motors delivered its first 2017 Chevrolet Bolt EVs to customers in California.

It wasn't just coincidence that GM delivered its first Bolts in California. More than half of all EV sales take place in California, propelled by the state's zero-emission vehicle (ZEV) mandate that requires a certain percentage of sales allocated to ZEVs. Several other states also have ZEV requirements.

Paul Welitzkin

(China Daily USA 05/12/2017 page20)