Global awareness of environmental problems and humanity’s role in changing them is growing. Electric vehicles are not the solution to all the pollution problems created by combustion cars, but they can help reduce emissions linked to urban and rural mobility. As with most things, technology has pros and cons. But the world is moving in this direction, some places faster than others.
Among the major economies where the automobile industry is a major driver of wealth is the United States. Growth of electric vehicles has been slow in this region compared to others, relegating the electric segment to a minor player in the industry. Sales just aren’t taking off as some automakers hoped. Why is that? There are four main reasons to consider.
Big cars, big roads, big infrastructure:
SUVs and pickup trucks were born in America. The need for more cargo and cabin space to traverse the vast rural landscapes outside of cities has made them very popular with American consumers. Americans love big things, and that goes for horsepower, too. Having a big vehicle with lots of power doesn’t necessarily mean going fast, but simply having the courage to travel long distances without breaking a sweat. As such, there is no other country in the world with more large vehicles than the United States.
Checking the numbers, we see that the average weight of an SUV in the United States was 4,969 pounds in 2023. Trucks were even heavier, at 5,840 pounds. As you can imagine, it takes a lot of fuel to move these vehicles. However, the vast energy resources available in the United States allow consumers to travel without worrying about refueling. The American economy is largely based on the oil and gasoline industry. This is why muscle cars, pony cars, trucks, and SUVs have seen greater growth in the United States than anywhere else.
It takes time to transition from fossil fuels to electric power, both physically given the size of the country and culturally. Installing reliable charging infrastructure to cover all areas will take years of effort. Switching drivers from large motors to smaller electric motors could take longer.
Price at the pump
The availability of energy sources in the United States has a direct – and favorable – impact on fuel prices across the country. Petrol and diesel costs remain much lower than in many regions where government policies encourage less travel and electric alternatives through higher fuel taxes.
In France, for example, the average price of a gallon of gasoline was $7.50 in February 2024, compared to just $3.49 in the United States. Due to the relatively low costs of operating an ICE vehicle in the United States, there is currently no strong financial incentive for consumers to go electric.
Import laws make electric vehicle production a challenge
Due to increasing competition from China and its plans for global expansion, the US government has taken steps to promote localized production with the Inflation Reduction Act (IRA). Despite good intentions for the U.S. economy, the regulations may have negative effects on battery electric vehicle producers in the country. By trying to remove China from the equation for battery manufacturing and metal suppliers, companies like Tesla, General Motors, Ford and Stellantis could find it more difficult to make products locally once the chain constraints become more difficult. supply taken into account.
The lack of competitive raw materials could make IRA an obstacle for U.S. automakers in producing BEVs. This is another reason why consumers are delaying the switch from thermal vehicles to electric vehicles.
| 2023 | 2024 | 2025 | 2027 |
| 40% of battery raw materials must come from the United States or countries with which America has a free trade agreement. | Do not use battery components made in China. | No battery metal mined or processed in China. | 80% of battery raw materials must come from the United States or countries with which America has a free trade agreement. |
A political controversy:
American citizens are preparing for the election campaign that will choose the next president. The most likely candidates are Donald Trump and Joe Biden, and electric vehicles are poised to become a key issue in the battle for the White House. On the one hand, there is the current administration which is trying to advance the country’s interests with the IRA. On the other hand, there is strong rhetoric that automatically links BEVs to China. Political uncertainty is forcing some automakers to delay their electrification plans, sending a negative message to potential electric vehicle customers.
The author of the article, Felipe Munoz, is an automotive industry specialist at JATO Dynamics.
