America Is Losing Biggest Manufacturing and Climate Race: Electric Vehicles

China is already dominating the emerging EV market, with about 40 percent of global production, and plans to expand even more rapidly over the next few years. The United States, on the other hand, currently produces only about 20 percent of the world’s EVs and its market and production are not growing as quickly.

Overall, China now produces more than 25% of all manufacturing globally, up from just 8% in 2000, while the US share dropped from 22% to 15% over the same period. A new paper from the Progressive Policy Institute urges Congress to jumpstart domestic EV production and sales by passing robust consumer and manufacturer incentives.  It finds that current tax incentives are inadequate, largely benefiting a small group of wealthy car buyers but not reaching the mass of middle-class motorists or being applicable to the SUVs, minivans, and light trucks that are popular with consumers and profit-centers for industry.

Opinion polls find that nearly three quarters of consumers say a tax credit would affect their decision to buy an EV, and 63% say a credit is an important measure to support EV adoption. But for EVs to quickly grow, the federal government and the states will need to invest rapidly in public and private incentives for building out a network of accessible electric charging stations.

Forbes

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