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New Mexico's EV Mandate Supports Sustainability Amid Challenges
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New Mexico's decision to adopt California's zero-emission vehicle rules has sparked a contentious debate, pitting environmental concerns against the interests of automotive dealers and rural communities. Automotive dealers are in a fix as concerns linger regarding infrastructure readiness and affordability of electric vehicles (EVs) in the state. Amid the slower-than-expected adoption of EVs, legacy automakers like General Motors (GM - Free Report) , Ford (F - Free Report) , Toyota (TM - Free Report) and Honda (HMC - Free Report) , among others, have already downsized their EV plans and spending.
State Regulators Uphold Mandates
Despite opposition, state regulators championed the adoption of EVs as a pivotal step toward reducing emissions and mitigating environmental impact. The Environmental Improvement Board voted 4-1 to uphold mandates aimed at increasing EV sales in New Mexico.
The mandate stipulates that 43% of all new passenger cars and light-duty trucks, along with 15% of new commercial heavy-duty trucks, delivered to New Mexico dealerships from national manufacturers, must be zero-emission vehicles, starting in 2026. Manufacturers must ensure that four out of every five passenger cars shipped to New Mexico have zero emissions by 2032.
Challenges and Concerns
While the mandate heralds a significant stride toward sustainability, critics argue that rural areas lack the necessary infrastructure for EV charging, exacerbating accessibility issues. Affordability also emerges as a key concern, particularly for consumers in rural and low-income communities.
Additionally, Republicans have criticized the mandates as impractical, citing the vast distances in New Mexico, which pose challenges for EV range and accessibility.Critics also point out limitations in tax incentives, which exclude a significant portion of the market, particularly pickup truck buyers.
Carlos Garcia of the Garcia Automotive Group highlights the broader economic ramifications of the mandates, warning of irreparable harm to New Mexicans. He pointed out the stagnant EV market growth and challenges faced by manufacturers, raising questions about the feasibility of the mandates. He also stated that the slowing demand for EVs has prompted many automakers to revise their electrification goals.
Scaled-Back EV Plans
Ford has scaled back the production of its electric F-150 Lightning truck.It has also postponed the launch of its three-row electric SUV until 2027 and plans to offer hybrid options for its internal combustion engine lineup in North America by 2030. F’s crosstown rival GM abandoned its target to produce 400,000 EVs between 2022 and mid-2024 due to the postponement of electric pickup truck production at its Orion Township plant in Michigan by one year.
Japan’s largest automaker, Toyota, adjusted its sales forecast for fully electric cars downward amid a surge in demand for its petrol-electric hybrids. The company now anticipates selling 120,000 battery-powered EVs in fiscal 2024, down from the previous forecast of 123,000, which was already reduced from the initial forecast of 202,000 units. Conversely, Toyota slightly raised its forecast for hybrid vehicles in fiscal 2024. TM’s closest peer, Honda, has also scrapped plans to build affordable EVs in collaboration with General Motors.
Last Word
As New Mexico progresses with its clean car initiatives, federal regulators have chosen to ease the initial tailpipe limits proposed last year. The state remains steadfast in its commitment to reducing emissions and promoting electric vehicle adoption. However, challenges surrounding infrastructure, affordability and economic impact underscore the need for careful deliberation and collaboration among stakeholders.
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New Mexico's EV Mandate Supports Sustainability Amid Challenges
New Mexico's decision to adopt California's zero-emission vehicle rules has sparked a contentious debate, pitting environmental concerns against the interests of automotive dealers and rural communities. Automotive dealers are in a fix as concerns linger regarding infrastructure readiness and affordability of electric vehicles (EVs) in the state. Amid the slower-than-expected adoption of EVs, legacy automakers like General Motors (GM - Free Report) , Ford (F - Free Report) , Toyota (TM - Free Report) and Honda (HMC - Free Report) , among others, have already downsized their EV plans and spending.
State Regulators Uphold Mandates
Despite opposition, state regulators championed the adoption of EVs as a pivotal step toward reducing emissions and mitigating environmental impact. The Environmental Improvement Board voted 4-1 to uphold mandates aimed at increasing EV sales in New Mexico.
The mandate stipulates that 43% of all new passenger cars and light-duty trucks, along with 15% of new commercial heavy-duty trucks, delivered to New Mexico dealerships from national manufacturers, must be zero-emission vehicles, starting in 2026. Manufacturers must ensure that four out of every five passenger cars shipped to New Mexico have zero emissions by 2032.
Challenges and Concerns
While the mandate heralds a significant stride toward sustainability, critics argue that rural areas lack the necessary infrastructure for EV charging, exacerbating accessibility issues. Affordability also emerges as a key concern, particularly for consumers in rural and low-income communities.
Additionally, Republicans have criticized the mandates as impractical, citing the vast distances in New Mexico, which pose challenges for EV range and accessibility.Critics also point out limitations in tax incentives, which exclude a significant portion of the market, particularly pickup truck buyers.
Carlos Garcia of the Garcia Automotive Group highlights the broader economic ramifications of the mandates, warning of irreparable harm to New Mexicans. He pointed out the stagnant EV market growth and challenges faced by manufacturers, raising questions about the feasibility of the mandates. He also stated that the slowing demand for EVs has prompted many automakers to revise their electrification goals.
Scaled-Back EV Plans
Ford has scaled back the production of its electric F-150 Lightning truck.It has also postponed the launch of its three-row electric SUV until 2027 and plans to offer hybrid options for its internal combustion engine lineup in North America by 2030. F’s crosstown rival GM abandoned its target to produce 400,000 EVs between 2022 and mid-2024 due to the postponement of electric pickup truck production at its Orion Township plant in Michigan by one year.
Japan’s largest automaker, Toyota, adjusted its sales forecast for fully electric cars downward amid a surge in demand for its petrol-electric hybrids. The company now anticipates selling 120,000 battery-powered EVs in fiscal 2024, down from the previous forecast of 123,000, which was already reduced from the initial forecast of 202,000 units. Conversely, Toyota slightly raised its forecast for hybrid vehicles in fiscal 2024. TM’s closest peer, Honda, has also scrapped plans to build affordable EVs in collaboration with General Motors.
Last Word
As New Mexico progresses with its clean car initiatives, federal regulators have chosen to ease the initial tailpipe limits proposed last year. The state remains steadfast in its commitment to reducing emissions and promoting electric vehicle adoption. However, challenges surrounding infrastructure, affordability and economic impact underscore the need for careful deliberation and collaboration among stakeholders.