Pitch: "Despite Biden's Executive Order, US Electric Vehicle Adoption Will Lag Behind the EU"

[Photo by EPA Yonhap News]

[Asia Economy Reporter Park Byung-hee] Despite U.S. President Joe Biden's executive order, credit rating agency Fitch expects the pace of electric vehicle (EV) adoption in the United States to lag behind that of the European Union (EU).

According to foreign media on the 22nd, Fitch recently commented that while President Biden's executive order to promote the eco-friendly car industry may help expand EV adoption within the U.S., it is considered a cautious approach compared to other countries. Earlier this month, President Biden issued an executive order aiming for zero-emission vehicles (ZEVs), including battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs), to account for half of all new cars starting in 2030.

However, Fitch assessed that the targets set by Biden's executive order are less ambitious compared to those of the European Union (EU), the United Kingdom, and China. This is explained by the Biden administration's attempt to balance conflicting demands from environmental groups and labor unions.

Fitch also pointed out that congressional cooperation is necessary to secure funding for the executive order, but the current uncertainty over such cooperation is a limitation.

Fitch evaluated that the executive order will have no short-term impact on the credit ratings of U.S. automakers.

The Economist Intelligence Unit (EIU), a British economic analysis organization, also recently commented that while the U.S. government is accelerating the transition to eco-friendly vehicles, the American EV industry will lag behind the EU, the UK, and Canada due to relatively small government subsidies and the absence of mandatory targets. In particular, it predicted that the share of EVs among U.S. vehicles will reach 50% not by 2030 but only by 2036.

This content was produced with the assistance of AI translation services.