In a series of executive actions following his inauguration, President Donald Trump has signaled his intent to dismantle several key environmental policies established by the previous administration. Among these actions is the rollback of electric vehicle (EV) incentives and the weakening of tailpipe emission standards. These moves are part of a broader effort to promote what Trump calls "consumer choice" and to ease restrictions on fossil fuel industries. The executive orders also declare a "national energy emergency," aimed at loosening environmental regulations and facilitating greater corporate freedom in energy production.
Under the banner of "Unleashing American Energy," Trump has outlined plans to eliminate what he refers to as an "electric vehicle mandate." This initiative seeks to remove regulatory barriers that favor EVs over traditional gasoline-powered vehicles. By halting federal funding for EV charging infrastructure and reviewing existing policies that might limit consumer choice, Trump aims to level the playing field for all types of vehicles. Additionally, he has directed agency heads to identify and potentially revoke regulations that impose undue burdens on domestic energy resource development, particularly focusing on oil, natural gas, coal, and other critical minerals.
One of the most significant changes involves the suspension of funds allocated through the Inflation Reduction Act and the Infrastructure Investment and Jobs Act for EV-related projects. This includes pausing disbursements for EV charging stations and reviewing processes to ensure they align with the new administration’s policy. Trump has long criticized what he perceives as government-imposed market distortions favoring EVs, despite the non-existence of a formal mandate. His administration targets subsidies and incentives designed to make EVs more affordable, arguing that they unfairly disadvantage other vehicle technologies.
The decision to weaken tailpipe emission standards is another critical aspect of Trump's agenda. By relaxing these standards, automakers may produce vehicles with higher emissions, which could exacerbate climate change. This move echoes similar actions taken during Trump's first term when he directed the Environmental Protection Agency to loosen Obama-era emissions rules. Despite these changes, the auto industry has already invested heavily in EV development, and consumer demand for EVs continues to grow. According to recent data, US EV sales increased by 7.3 percent in 2024, capturing 8.1 percent of the overall car and light truck market.
Beyond transportation, Trump's executive orders also emphasize ramping up mining efforts, especially for rare earth minerals crucial in advanced technologies like electric vehicles and defense systems. This focus on mineral extraction highlights strategic interests, including potential investments in regions rich in these resources. While Trump's policies aim to boost domestic energy production and consumer choice, they also raise concerns about the environmental impact of increased fossil fuel use and reduced emission controls. Transportation accounts for nearly 28 percent of US greenhouse gas emissions, making this sector pivotal in addressing climate change challenges.
The UK automotive market is witnessing a significant transformation as more drivers opt for electric vehicles (EVs), particularly in the used car sector. Data from cinch, a leading platform for selling pre-owned EVs, shows a remarkable 311% increase in sales over the past year. This trend highlights not only the growing popularity of EVs but also their competitive advantage in terms of cost and efficiency. Despite challenges such as charging infrastructure, the market is rapidly evolving, with prices narrowing between new and used EVs and traditional internal combustion engine (ICE) vehicles.
Accelerating Adoption: The Rise of Used EVs in the UK Market
The surge in used EV sales reflects a broader shift in consumer behavior. Cinch's data indicates that EVs are now selling at a rate 26% faster than petrol and diesel cars. Sam Sheehan, Motoring Editor at cinch, points out that while new EVs still carry a premium due to construction costs, this gap is closing quickly in the second-hand market. Additionally, the overall cost of ownership for EVs is becoming increasingly attractive, with home-charged EV owners saving £1,040 annually on running costs compared to petrol cars. As the market matures, the financial benefits of EVs are becoming clearer.
Sheehan further explains that the appeal of EVs extends beyond just savings. Models like Tesla's Model 3, Renault's Zoe, and Nissan's Leaf remain popular choices among consumers. The affordability of these models, especially in the used market, has contributed significantly to their widespread adoption. Between July and September 2022, the average price for a used EV was £25,078, compared to £14,419 for petrol and diesel cars—a difference of just over £10,000. By 2024, this gap had narrowed considerably, with EVs costing just £1,000 more on average.
Market Dynamics: Competing Forces and Infrastructure Growth
The competitive landscape for EVs is heating up, with Tesla's Model 3 continuing to dominate despite new entrants. Sheehan anticipates increased competition from various manufacturers, particularly from Chinese brands. However, Tesla's loyal customer base ensures its continued prominence in the UK market. The maturing used EV market is lowering the barrier to entry, making it easier for consumers to switch to electric vehicles. Government subsidies have played a crucial role in this transition, especially in countries like Germany.
Another critical factor influencing the growth of EVs is the expansion of public charging infrastructure. In October 2024, the UK boasted 71,459 public charge points, nearly doubling the number from two years earlier. This rapid expansion addresses one of the primary concerns for potential EV buyers—how and where to charge their vehicles. With more charging options available, the convenience and accessibility of EVs are improving, further driving their adoption. The combination of narrowing price gaps and expanding infrastructure suggests that the future of transportation in the UK is increasingly electric.