Electric car sales have picked back up in recent months with global sales running a third higher in October than the previous year. In many countries much of that growth is still being driven by government subsidies. The US is one of them, although that support may not last much longer.
President-elect Donald Trump is expected to kill the $7,500 consumer tax credit for EV purchases as part of broader tax-reform legislation. Asian and European carmakers have been particular beneficiaries of this lucrative offer. They have most to lose.
The US and China are the world’s two largest national markets for EVs. But the latter is dominated by domestic brands, which account for more than 92 per cent of the total, leaving little room for global automakers. The $95bn US market, by contrast, is an open one.