White House wants EVs to make up 67% of annual US sales by 2032

The Biden administration has outlined new proposals that target having the US car industry, with forecasts that annual electric vehicle sales in the country will rise to 67% by 2032.

The estimates follow new strict automobile emissions limits, with the targeted figure representing a nearly tenfold jump in the number of EVs sold in the US today.

Commenting on the proposal by the US Environmental Protection Agency, announced on Wednesday, CNBC’s Phil LeBeau said this boils down to more than just growth in EVs.

EV push expected to help cut automobile emissions by 56% from 2027

According to LeBeau, new guidelines on emissions are the Biden Administration’s latest footprint in climate regulations.

While the previous goal was to see approximately 50% of all annual vehicle sales be EVs, the new commitment is pegged on the fresh push to cut carbon emissions per vehicle by 56% between 2027 and 2032.

Automakers will decide how they go about ensuring the CO2 grams per mile limits are effected in their vehicles. This could be through EV technology or more “clean burning hybrids.”

However, White House projects the EV market will account for most of the annual sales of vehicles aligning with the aggressive approach. In this case, acting tough on manufacturers will force them to sell more vehicles that meet the set standards in order to comply.

Tesla sold 62.6% of EVs in the US in Q1, 2023

While EV sales have grown over the past few years, and currently accounts for 7.2% of auto sales, the US still lags annual sales recorded in China and Europe.

LMC Automotive, which has been tracking the EV conversion and sales in the country, projects at most a 50% hit in annual sales for EVs by 2032.

Tesla, now the top luxury car brand in the US, sold 62.6% of EVs in the US in Q1. LeBeau says the EV giant is likely not to be impacted by the regulations. However, most of the legacy automakers will be. These include GM and Ford, the assessment being so even as the big 3 car makers in the country commit $80 billion on EVs.