US government still targets 1 million EVs by 2015 despite slow sales
The Obama administration insists it remains committed to its 1 million plug-in vehicle target for 2015, even as US sales lag behind earlier expectations.
The White House says it is not abandoning its goal of getting 1 million electric vehicles and plug-in hybrids onto US roads by 2015, despite electric vehicle sales running well behind the pace needed to hit that target. Heather Zichal, deputy assistant for energy and climate change, said the administration remains committed to investment in electrification and is still pushing for expanded EV incentives.
President Barack Obama first announced the 1 million plug-in vehicle goal in 2008. As of late 2013, the US market had reached only about 100,000 plug-in vehicles, including both full battery electric vehicles and plug-in hybrids. That leaves a substantial gap between the current figure and the 2015 target, with just over a year remaining at the time of the announcement.
Policy and incentives remain uncertain
The administration has previously proposed raising the federal EV tax credit from $7,500 to $10,000 and shifting it to a point-of-sale rebate, making it more attractive to buyers. However, Congress has not acted on the proposal, and there is no clear indication when or if it will be adopted. Senator Maria Cantwell suggested that Congress could revisit the issue as part of wider tax reform, but no timetable has been set.
The White House has pointed to new models such as the BMW i3, which was soon to go on sale in the US, as evidence that manufacturers continue to invest in the segment. Nevertheless, the slow pace of sales reflects both consumer caution and limited model availability. Some manufacturers have responded to weak demand by cutting prices or increasing incentives, as seen in recent moves by Ford and other brands. For more on price adjustments, see US dwindling electric auto sales bring price cuts.
International context and future prospects
While the US continues to struggle with plug-in vehicle uptake, other markets have taken different approaches. China, for example, has announced major investments in charging infrastructure, and some European countries are considering changes to EV subsidies as sales increase. For a look at China’s charging plans, see China to invest $763m in EV charging station infrastructure by 2015.
Whether the US can close the gap to its 1 million EV target by 2015 will depend on a combination of policy action, market response and manufacturer commitment. For now, the administration says it is not giving up on the goal or on continued investment in electrification.
