Why will Donald Trump slow down President Joe Biden’s electric vehicle (EV) push in the US. According to the former US President, the EV technology is causing disruption to American workers.
He says that if the US goes ahead with its EV policy, the country’s auto industry would shut down in a few years as a result of jobs moving to China.
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But analysts have a diametrically opposite view — they feel that building EVs in the US will help the country compete with China more vigorously.
And, Trump mentioned range anxiety as a talking point, dubbing EVs as “bad cars.” Despite charging posing a challenge in some places, surveys infer that consumer satisfaction with the cars is very high.
EVs and job losses
There may be a grain of truth in Trump’s negative views on electric vehicles. The transition for the labourers may be a problem area and full transition would mean more machines at work and less labour.
Result: Loss of jobs in the long term. In fact, workers will need skills’ upgrade or different skill sets to be employable in the industry.
Biden’s policies helping US play catch up with China
Biden has boosted the transition to electric vehicles with tax incentives and other support systems.
The global auto market has seen a dramatic shift towards electric vehicles and Biden’s policies are actually helping the US play catch up with other markets such as China and Europe.
EV majors started their multi-million dollar investments in the previous Trump regime even though the sops were offered under Biden’s government.
Biden grapples with reality
Even as Biden goes for a EV push, he is trying to grapple with the realities of a changing market.
Biden’s policies are intended to help the US adapt to a transforming global economy and cater to climate change, but his efforts will take quite some time for anyone to see any benefit.
In the meantime, politicians may say that Biden’s agenda is the result of complex problems with little political consequence.
“EVs cost a fortune but don’t go too far”
But according to Trump, electric vehicles cost a fortune and don’t go too far. And, if he slows down this industry with his new policies in case he becomes President again, it could create an upheaval in the US auto market, though it may not be as devastating as perceived.
Both newcomers like Tesla and Faraday Future, and even established players like GM and BMW have heavily invested in EVs and are betting on them to succeed ICE vehicles.
Global EV players to thrive
The US market only comprises 20 per cent of the global EV sales, and a commitment to clean air will see many more EVs being sold in the US.
Even if EVs slow down under Trump’s second term, any auto giant, which considers itself a global player, will continue to thrive as the operational cost of these next-gen vehicles is much cheaper than their ICE counterparts. And, this will prompt people in the global market to lap them up.
E-Vroooom’s views
But if Trump stops the tax sops offered by Biden, it could slow down the EV push, at least in the short term (or even middle term), that the US (led by California) has undertaken.
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