Biden Administration to aim for 50% New Electrified Vehicle Sales by 2030

• This is a non-binding goal however many automakers are backing the plan.

• The plan involves battery electric, fuel cell, and plug-in hybrid vehicles.

• In 2019, more than 17 million new vehicles were sold in the US.

The cause is a good one. Importantly, Biden’s goal and executive order present automakers and all related businesses with a timeline. The hope is that by 2030, 50% of all new vehicles sold in the US will be electrified in one way or another. This “plan” also means that new emissions standards some of which will go into effect as early as 2027 for larger vehicles.

The announcement has been well received however Detroit 3 automakers warn that there will be a huge cost involved. Billions of dollars will need to be invested in government incentives, the EV charging networks, and R&D among other related components.

“Although this commitment appears to be more of a symbolic one, these sales targets are certainly not unreasonable, and most likely achievable by 2030 given that automakers have already baked in large numbers of electric vehicles into their future product cycles,” Edmunds analyst Jessica Caldwell said in a statement reported by Automotive News.

Automakers are effectively supporting this goal as BMW, Ford, Honda, Volkswagen, and Volvo Cars have issued a joint statement following the Biden Administration’s move to set new federal vehicle emissions standards:

“We were proud to stand with California to establish progressive new greenhouse gas regulations, and we remain committed to leading the industry in fighting against climate change. That’s why we support the Administration’s goal of reaching an electric vehicle future and applaud President Biden’s leadership on reducing emissions and investing in critical infrastructure to achieve these reductions. While the California framework companies are driving towards 40-50% of our sales being EVs in the next nine years, bold action from our partners in the federal government is crucial to build consumer demand for electric vehicles and put us on track to achieve the global commitments of the Paris Climate Agreement. That includes a strong nationwide greenhouse gas emissions standard, continued investments in charging infrastructure, and broad consumer incentives for all-electric vehicle purchases.”