Local, legal regulations for EVs

Issue #276

Local regulations and legal frameworks play a key role in the electric vehicle (EV) and overall automotive journey. Norway for example is on the cusp of completing a transition away from combustion cars, thanks to targeted incentives that made EVs an easy choice. China has invested heavily?for more than 15 years in developing EVs, with support from the government, to reach a dominant position. The price of EVs has always been a showstopper for many to buy one. However, the US federal EV tax credit was a bigger factor for EV buyers’ purchase decisions this year than the overall vehicle price. Dropping it may impact EV sales! Ontario government has pledged to remove some of the bike lanes, arguing that they are causing 'standstill' traffic congestion in Canada’s largest city. Californians purchasing a used car with an active warranty just got an unwelcome reality check - these vehicles are not covered under the state’s “refund-or-replace remedy” for defective cars, better known as the “Lemon Law.” Can a navigation app be held responsible if a user gets into an accident? Below are some recent updates in regulations and their impact on the automotive industry, specifically EVs.

EV lessons from Norway

Norway is on the cusp of completing a transition away from combustion cars thanks to targeted incentives that made EVs an easy choice. While there have long been incentives to encourage EV purchases, adoption only started to accelerate in recent years, as a greater variety of cars became available. Once an inflection point was reached, the ramp-up was rapid. Despite winding back some tax benefits, EVs accounted for 94% of new car sales in October — almost double the rate in China — putting the country within reach of a goal to stop adding combustion engines next year. Norway had advantages that helped propel the transition — successive governments that were aligned on the need to reduce transport emissions. Its cold climate and low population density were hurdles. It’s also a mature market, which meant changing ingrained habits and making it a test case for other countries. - Bloomberg

China's EV domination

China has invested heavily?for more than 15 years in developing EVs, to limit its dependence on imported oil. Wen Jiabao, China’s premier from 2003 to 2013, made EVs one of his highest priorities. In 2007, he reached outside the Communist Party to choose Wan Gang, a former Audi engineer in Germany, as the country’s minister of science and technology. Mr. Wen gave him essentially a blank check to make China the world’s leader in electric cars. Now, half of China’s car buyers choose battery electric or plug-in hybrid cars. Until recently, buyers of electric cars also received large subsidies from the government. Carmakers have received low-interest-rate loans from state-controlled banks to build dozens of factories, as well as government tax breaks and cheap land and electricity. By one estimate, Beijing’s assistance to China’s electric car and battery sectors has been worth more than $230 billion since 2009 — one reason that the European Union has imposed anti-subsidy tariffs. - New York Times

EV price vs tax credit

The price of EVs has been a showstopper for many potential customers to buy one. However, the federal EV tax credit — expected to be on the Trump administration’s chopping block — was a bigger factor for EV buyers’ purchase decisions this year than the overall vehicle price. J.D. Power found that 81% of Volkswagen EV buyers chose their vehicle due in part to the federal EV tax credit. - Auto News

Highways or bike lanes

Since 2020, Toronto has unveiled kilometers of protected bike lanes But the Ontario government has pledged to remove some of them, arguing that bikeways are causing 'standstill' congestion in Canada’s largest city because they can sacrifice a potential driving lane. The province recently took a step toward making good on that promise, passing Bill 212?— also known as the “Reducing Gridlock, Saving You Time Act” — which gives the province authority to remove municipal bike lanes and cut red tape around building a new highway. Specifically, the bill targets 18 kilometers (11 miles) of newly installed bike infrastructure on stretches of three city arteries. - Bloomberg

California's lemon law for used cars

Californians purchasing a used car with an active manufacturer’s warranty just got an unwelcome reality check. According to a recent ruling by the California State Supreme Court, these vehicles are not covered under the state’s “refund-or-replace remedy” for defective cars, better known as the “Lemon Law.” The decision effectively narrows protections for used car buyers, leaving many to shoulder the financial burden if their vehicle turns out to be problematic. - Carscoops.com

Navigation apps and road accidents

Can a navigation app be held responsible if a user gets into an accident? That is the question being asked in India after three men died when their car veered off an unfinished bridge and fell on to a riverbed. Police are still investigating the incident, but they believe that Google Maps led the group to take that route. A part of the bridge had reportedly collapsed earlier this year because of floods and while locals knew this and avoided the bridge, the three men were not aware of this and were from outside the area. There were no barricades or sign boards indicating that the bridge was unfinished. - BBC

Source for banner image on top of newsletter: Michael Barera, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons