Farewell Fossil Fuels

Whether the U.S. emerges as a true leader in electric vehicles remains to be seen. By Derrick Lilly | Fall 2017



Tesla’s eccentric CEO Elon Musk wins the limelight for autonomous and electric vehicles (EVs) here in the U.S., but his luxury EVs aren’t the only ones revving up the automotive and tech industries. In fact, gasoline and diesel-fueled automobiles could become things of our past pretty fast, thanks to China.

Touting the largest auto market in the world, China joins Britain, France, and India as the latest global powerhouse to announce its intent to ban sales of traditional gasoline and diesel-fueled automobiles.

Britain and France both pledged to invest billions in electric infrastructure and halt sales of traditional automobiles by 2040, and India plans to sell only electric cars by the end of the next decade. And while China hasn’t yet set its timetable—the country already accounts for more than 40 percent of EVs worldwide—its plan to transition to fully electric vehicles stands to disrupt the global transportation and petroleum industries, among others.

China has been providing billions of dollars in research subsidies for electric development and incentives to buyers, but a new quota system will require its automakers to steadily transition production exclusively to EVs, pressuring them to step up development of electric technology. China has also ordered state-owned power companies to speed up charging station installations to increase the appeal of EVs and help curb oil imports and environmental issues.

International automakers are already taking note. Volvo Cars, owned by China's Geely Holding Group, plans to make electric cars in China for global sale starting in 2019; Mercedes Benz will offer electric versions of all its models by 2022; Honda announced at this year’s Frankfurt Motor Show that it’ll offer electric versions of all new models launched in Europe from now on; and General Motors, Volkswagen, Nissan, and others are exploring or forming joint ventures with Chinese partners to develop and manufacture EVs in China.

These moves could leave the U.S. as the last major stronghold for automobiles powered by gasoline and other fossil fuels considering the U.S. federal government hasn’t yet gone so far to support EVs. Incentives for EVs come in the form of tax breaks up to $7,500 for consumers. Some states, including Illinois, also offer tax credits, rebates, grants, loans, and other tax and fee reductions to encourage sales of electric and hybrid vehicles.

Whether the U.S. emerges as a true leader in EVs remains to be seen, but the technology stands to disrupt not only several important industries around the globe but also our lives. If the pace of technological advancement continues accelerating as it has, it’s likely we’ll all be “driving” autonomous EVs much sooner than we ever thought—and accounting for them.