Major changes in electric vehicle regulations are shaking up the automotive industry.
The Biden administration finalized stringent climate regulations on petrol cars, aiming to ensure that over two-thirds of passenger cars and light trucks sold in the US by 2032 are electric or hybrid vehicles. The Environmental Protection Agency’s rule, imposing strict limits on tailpipe pollution, aims for 56% of new vehicles sold to be electric and 13% to be plug-in hybrids by 2032.
These regulations are a significant departure from the current status quo, as last year electric vehicle sales accounted for only 7.6% of new vehicle sales in the US. Despite this, the EPA maintains that carmakers have not wavered in their intentions to produce electric vehicles.
Meanwhile, Australia is aligning its emissions standards with Euro 6d standards, aiming to bring the country in line with European emission protocols. These regulations will apply to all new cars, SUVs, and light commercial vehicles entering the market from December 2025, with universal application by 2028.
In the US, the newly unveiled regulations represent a scaled-down version of previously proposed rules. These regulations have garnered support from the United Automobile Workers union but have faced criticism from industry groups, including the American Petroleum Institute, citing concerns about consumer choice and affordability.
The Biden administration’s push for stricter regulations on petrol cars comes amid a contentious political landscape, with Republicans accusing the president of favoring China and environmental activists over American workers. As the automotive industry undergoes significant changes, the impact of these regulations on consumer choice, manufacturing jobs, and the global automotive market remains to be seen.
