California regulators have approved plans to ban the sale of new gasoline-powered vehicles by 2035. The plan includes a timetable that phases out the sale of new ICE-powered vehicles over the course of the next 13 years.
Back in 2020, California Governor Gavin Newsom issued an executive order that set 2035 as the target for the end of ICE-powered passenger vehicle sales. However, according to a recent report from Bloomberg, the newly approved proposal also includes annual goals that lead up to the 2035 target, with EVs making up 35 percent of new vehicle sales by 2026, and 68 percent by 2030. Critically, plug-in hybrid and hydrogen fuel cell vehicles count towards those annual goals.
California is the largest auto market in the U.S., making up more than 10 percent of annual national car sales. California is also the biggest EV market in the U.S. According to Bloomberg, which cites the California New Car Dealers Association, electric vehicles made up 15 percent of new cars registered in California this year. Additionally, according to Bloomberg, which cites Edmunds, EVs made up just 6 percent of new car sales in the U.S. through the first half of the 2022 calendar year.
Nevertheless, California’s push to bolster EV adoption is expected to result in other states following suit. Currently, 17 other states follow California’s emissions standards, which are considered stricter than the federal standards.
California’s new EV adoption plan coincides with an EV push from the Biden administration, which includes a $7,500 tax credit as part of the recent Inflation Reduction Act signed last week, as well as $5 billion to support an expansion to the U.S. EV charging network. California already offers rebates to customers who purchase a zero-emission vehicle, with up to $7,000 available for vehicles that cost less than $45,000.
As a reminder, GM is in the midst of pivoting towards an all-electric portfolio, with plans to launch 30 new EV models by the 2025 calendar year.