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In the wake of the recent\u00a0Driving America Forward Act, once again the discussion about incentivising EVs is on the table. So, let\u2019s have a look at how EV incentives really impact the EV market.<\/p>\n
But, before diving into the European, American and Chinese EV market and incentives, let\u2019s have a quick look at what is playing now in the US.<\/p>\n
Good news for electric\u00a0car manufacturers in the US. The current tax credit scheme may be about to come to an end but\u00a0a new bill is being discussed to\u00a0extend the current federal EV tax credit to 400,000 cars produced up from the 200,000 cap today.
\nThe Driving America Forward Act would grant each car manufacturer a $7,000 tax credit and by doing so will boost the EV sales of car manufacturers, including but not exclusively GM and Tesla, who would suffer a sales drop facing the diminishing tax credit. In addition, the hydrogen fuel cell credit would be extended as well through 2028.<\/p>\n
Good to know, the existing EV tax credit was about $7,500 and will phase out over 15 months once a car manufacturer hits 200,000 cumulative EV sales. For instance, GM already hit its tax credit cut to $3,750 on 1 April, while Tesla\u2019s tax credit fell to $3,750 on 1 January\u00a0and will loose it entirely by the end of 2019.<\/p>\n
However, while the bill is backed by major car manufacturers, such as GM, Tesla, Ford, Toyota, Fiat, Honda, BMW, Nisan and Volkswagen Group, not everyone is in favour of it. The White House proposed last month to immediately eliminate the $7,500 tax credit, while Sen. John Barrasso, a Republican who chairs the Environment and Public Works Committee, proposed a highway user fee on EVs to pay for road repairs and end the tax credit.<\/p>\n
Yet, the debate around incentivising EVs has a huge impact on the entire EV market. Moreover, various studies in various continents have shown the significant correlation between EV incentives and the EV market share.<\/p>\n
Read the outlook of\u00a0EV incentives in China and in the USA<\/a>, and how they confirmed China as a leading market.<\/p>\n Read the outlook of EV incentives in Europe<\/a>, and the correlation between the various incentives in the various countries and their reflection on the EV market.<\/p>\n<\/div>\n<\/div>\n <\/p>\nAuthored by: Fien Van den steen<\/b><\/div>\n
![\"JMF\"](\"http:\/\/en.advancedfleetmanagementconsulting.com\/wp-content\/uploads\/2017\/04\/JMF-150x150.jpg\")
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