What Is Biden's 2030 EV Goal and How Will It Affect Car Buyers?

President Biden's executive order sets a target for 50% of new U.S. car sales to be zero-emission vehicles by 2030, a goal supported by major automakers but dependent on consumer adoption and infrastructure growth. This non-binding agreement covers battery-electric, plug-in hybrid, and fuel-cell electric vehicles, signaling a significant shift in the American automotive landscape. For car shoppers, this policy accelerates the transition to electrification, making understanding EV options, incentives, and charging logistics more critical than ever.

What Vehicles Are Included in the 50% Sales Goal?

The White House's definition of "zero-emission vehicles" is crucial for understanding the scope of the goal. It encompasses three main types of electrified vehicles:

• Battery Electric Vehicles (BEVs): These are fully electric vehicles powered solely by a large battery pack. An example is the Tesla Model Y, which was the best-selling all-electric model in the first half of 2021.
• Plug-in Hybrid Electric Vehicles (PHEVs): These combine a gasoline engine with an electric motor and a battery that can be plugged in to recharge. They offer a limited all-electric range before the gas engine engages.
• Fuel Cell Electric Vehicles (FCEVs): These vehicles use hydrogen gas to generate electricity through a chemical reaction in a fuel cell, emitting only water vapor.

A key driver behind this goal is the rapidly declining cost of technology. The White House noted that battery-pack costs have fallen 85% since 2010, making EVs more financially viable for both automakers and consumers.

Which Automakers Are Supporting the 2030 EV Target?

The 2030 goal is bolstered by public commitments from a broad coalition of automakers. While the agreement is not legally binding, their statements indicate a shared direction for the industry.

• The Detroit Three: General Motors, Stellantis (parent company of Jeep, Ram, and Chrysler), and Ford Motor Company released a joint statement announcing a "shared aspiration" for 40-50% of their annual U.S. sales to be EVs.
• Global Brands: BMW, Ford, Honda, Volkswagen, and Volvo issued a separate, similar commitment, stating they are "driving towards 40-50% of our sales being EVs in the next nine years."

This collective ambition suggests that consumers can expect a flood of new electric models across various segments and price points in the coming years, increasing choice and competition.

How Likely Are Consumers to Switch to Electric Vehicles?

Automaker aspirations are one thing, but consumer adoption is the true key to achieving the 50% target. Current data shows a significant gap between interest and ownership.

A Pew Research survey from June 2021 highlighted the challenge:

• Only 7% of U.S. adults reported currently owning an electric or hybrid vehicle.
• However, 39% said they were "very or somewhat likely" to seriously consider an EV for their next new car purchase.

This indicates a substantial potential market, but also the need for continued education on EV benefits, addressing range anxiety, and expanding the public charging infrastructure to convince a broader audience.

What Does This Mean for Your Next Car Purchase?

For anyone planning to buy a car in the next decade, this policy and industry shift have real-world implications. Based on our assessment experience, here’s what car buyers should consider:

• Increased EV Options: Your choices for new electric models will expand dramatically, from trucks and SUVs to more affordable sedans.
• Resale Value: The value of traditional gasoline-powered cars may be affected in the long term as the market shifts toward electrification.
• Incentives Matter: The federal tax credit of up to $7,500 for qualifying EVs, along with potential state incentives, will remain a critical factor for affordability. It's important to check which models are still eligible.
• Charging Infrastructure: The availability of convenient charging, both at home and on the road, is a primary consideration. Home charging speed can be affected by your electrical system and the charger you install.

The 2030 target is an ambitious deployment goal that aligns government policy with industry investment. While challenges remain, it firmly sets the course for an electric future, making it essential for consumers to become informed about electric vehicles today.