Rules for electric traffic

In the USA, there are 45 sets of regulations on electric mobility—almost as many as there are states. The West Coast state of California is a national leader in the introduction of electric cars and plans to ban the sale of combustion engine cars from 2035. Overall, however, the figures for new registrations of electric cars in the USA are comparatively modest: In 2024, 1.3 million units were sold, which corresponds to a market share of eight percent. This is despite the fact that Tesla, the world’s second-largest manufacturer of electric cars, is based in the country. To date, the purchase of battery electric vehicles and the expansion of a charging infrastructure has been supported by the Inflation Reduction Act (IRA) of 2022. However, the government under President Donald Trump has called for the abolishment of subsidies that favor electric drives over other technologies.

In South America’s largest country, electric mobility has only developed slowly so far. Fuel based on ethanol, which is obtained from sugar cane, has dominated the market here for more than 50 years. For a long time, the prevalence of sustainable fuels hampered the breakthrough of electric drives. However, a growing market for electric vehicles is now also emerging in Brazil. Since the end of 2023, companies have received tax incentives for the development and production of low-emission drives. Several major car manufacturers in the country are taking a middle course with hybrid models that run on ethanol and electricity.

The automotive industry is a key economic sector in South Africa. Around two thirds of production is exported every year, mainly to Europe. In view of increasingly strict emission regulations in the purchasing countries, South Africa is reorienting itself: In order to meet the needs of its trading partners and at the same time strengthen its own automotive sector, the government wants to invest in the production of electric cars—the first models are to be produced locally in 2026. The cost of research and development in particular is to be reduced with a significant tax relief. Another focus is on the development of regional battery production.

This northern European country is considered a pioneer in electric mobility. Almost 90 percent of all new cars sold there in 2024 were equipped with an electric drive. The recipe for success: The government is promoting the switch to electric vehicles with a variety of incentives that are predictable over the long term. These included the (temporary) abolition of VAT, reduced parking fees, reduced toll and ferry prices, and the option of using bus and cab lanes.

As the world’s fifth largest car manufacturer, Germany is particularly affected by the mobility transition. The automotive sector is a key industry that secures numerous jobs. However, after initial successes in promoting electric mobility, the market slumped by almost 25 percent in 2024. One reason for this was that the state subsidy for e-vehicles expired at the end of 2023, which unsettled consumers. Recently, sales figures have risen sharply, not least due to stricter CO2 limits that vehicle fleet operators have to comply with. Further subsidies are planned for a nationwide public charging infrastructure in order to increase the attractiveness of e-vehicles for buyers. Whether the political goal of putting at least 15 million all-electric cars on the roads by 2030 can be achieved is questionable. The current figure is less than 2 million.

China plays a leading role in the development and production of electric vehicles and batteries. For more than 15 years, the government has been investing billions in promoting these technologies, with a particular focus on the competitiveness of the domestic automotive industry in addition to environmental aspects. The efforts have been successful. The Chinese company BYD is now the world’s largest manufacturer of electric cars, with more than four million vehicles sold in 2024. From subsidies for buyers and the rapid development of a charging infrastructure to favorable loans for the industry, China’s extensive support measures have enabled the sector not only to serve the huge domestic sales market but also to expand massively into foreign markets.