EV Credit Rules Could Slow Sales
Newly released U.S. guidance would eliminate models with Chinese material.

Higher cost of EVs compared to internal-combustion-engine models is a big factor in slower U.S. adoption compared to other regions.
IMAGE: Pexels/Kindel Media
Guidance released by the Biden administration clarifies rules governing electric-vehicle tax credits.
Limits around the credits aimed at curtailing China’s EV supplies dominance reduce the number of EVs that qualify.
The fullest possible credit of $7,500 per new EV purchase would go only to vehicles without battery material originating in China or other countries on the U.S. hostile list, or “foreign entities of concern,” which also includes the likes of North Korea and Russia.
Though the administration is trying to increase EV adoption in the U.S., where many consumers have continued to resist switching from gas-powered vehicles, the guidance would likely slow that very shift by limiting the number of models that qualify for tax breaks.
EV adoption, at 8% in the U.S. in the third quarter, still lags the pace in Europe, where EVs now make up 14% of market share. Higher cost of EVs compared to internal-combustion-engine models is a big factor.
Carmakers have recently downshifted their EV production plans due to sales proving slower than they’d expected.
More Dealer Ops

Dealer Debrief: August Auto Sales
Gas-powered engines still dominate the U.S. vehicle market, but hybrids are gaining ground as consumers look for ways to cut their gas costs.
Read More →
Dealership Profits Decline
While new and used retail sales stagnated, dealerships have been particularly supported by fixed operations and finance-and-insurance profits, according to a new report.
Read More →
Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
