DETROIT (AP) – Whether people like it or not, automakers are launching new models of electric vehicles as the industry responds to stricter pollution regulations and calls to reduce emissions to combat climate change.
The latest offer comes from General Motors, which launched a compact Chevrolet Bolt SUV on Sunday. It comes with an estimated payload range of 250 miles (400 kilometers) and a starting price of $ 33,995.
The Bolt Electric Utility Vehicle will go on sale earlier this summer as a 2022 model. Sales will start with a small number of previous versions priced at $ 43,495.
This will bring the total number of EVs on sale in the U.S. to at least 23, and Edmunds.com expects that number to reach 30 this year. About 2.5 million electric vehicles were sold worldwide last year. IHS Markit predicts a 70% increase this year alone.
But change still has a long way to go. All-electric vehicles accounted for less than 2% of new vehicle sales in the United States last year, and Americans continue to spend record amounts on larger gas trucks and SUVs. EVs represent 3% of world sales, says GM.
The new Bolt is part of GM’s promise to bring 30 new EVs to the world market by 2035, and its goal of producing only electric passenger vehicles in 14 years. It will be taller and have more legroom in the rear seat than the current Bolt electric hatchback, which is being upgraded, and will compete in one of the hottest segments of the American market. Buyers can also opt for GM’s partially automated “Super Cruise” driver assistance system.
Stephanie Brinley, an analyst at IHS Markit, said the new SUV is another step towards the broader adoption of all-electric vehicles, but much more is still needed.
“At least one element of mainstreaming EVs must be consumer choice and availability of usable EVs in a variety of segments and price ranges,” she said. “Some will have more impact than others, but there is not a single vehicle that can turn the tide.”
The Bolt SUV will be launched when GM is at a price disadvantage for most competitors due to a $ 7,500 federal tax credit for EV. The credit is eliminated after manufacturers reach 200,000 sales of electric vehicles, and GM and Tesla have already passed that level. A Democrats bill on the House Forms and Resources Committee would raise the limit to 600,000 and cut the credit to $ 7,000.
A White House spokesman said President Joe Biden is in favor of restoring full tax credit, prioritizing vehicles made in the U.S. and targeting middle class consumers. The spokesman declined to comment on the sales cap.
GM CEO Mary Barra said last week that the company would like to see credit expanded so that “pioneers” with the new technology are not penalized.
Chevrolet marketing director Steve Majoros said he would love to have the tax credit back to spur sales. He said GM is talking to the Biden government about the credit.
“For now, we are very satisfied with the price we have and we are going to have a good race with him,” said Majoros.
GM said it was able to use economies of scale to reduce the price of the updated Bolt hatchback by more than $ 5,000 to $ 31,995.