The growing demand for electric vehicles by consumers instead of conventional fossil fuel cars has activated automakers to design various cars meeting consumer demands. This year alone will witness OEMs and new companies in the electric vehicle industry, releasing more than 22 new electric vehicle models globally. The automakers stated that some models would be released as standalone entities, while others will be advancements in the existing product line. However, the unleashing of these electric models has activated impediments designed to halt the adoption of the cars. Consumers started recognizing major OEMs and new electric vehicle startups, committing to full electrification at an exponential rate, forcing them to change their mindset and try out this technology.
Although the automakers have thrown their best skills into electric vehicles, the tax credits intended to accelerate these cars’ uptake and the scarcity of electric vehicle charging infrastructure have hindered the adoption of these models by consumers. The past decade had placed a tax credit of $7500 for consumers who purchase electric vehicles to motivate them to buy the cars. In that period, electric vehicle technology had not caught up its spark in America because the industry was at the launch stage. Additionally, the manufacturers who had eyed this sector were few, and the tax credit had a limit of 200000 vehicles in the first production cycle for each company. From 200001, the cars would have a zero-tax credit. This made the bigwigs that had participated in this technology, like Tesla and General Motors, and had already sold 200000 electric vehicles be disqualified from this allowance, raising their electric models’ prices.
Nevertheless, the Biden administration has realized that this regulation has affected the electric vehicle industry and is looking for loopholes and modifications that can help return the tax credits on the cars for companies that have surpassed the threshold. This move will create fairness in the industry allowing the existing and new manufacturers to compete without absolute advantage over each other. However, the adjustment of the tax credit does not solve the problem of scarcity of supporting infrastructure.
Consumers might love the concept of switching from refill stations to recharging stations, but the insufficiency of the charging stations might create time problems. The government and the local leadership must institute mechanisms to ensure the linkage of power grids with charging infrastructure, development of home charging systems, and other mechanisms that will facilitate the short-term deployment of electric vehicles without creating more problems for the consumers.