The countries world over are waking up to the reality of climate change and are taking steps to discourage the use of fossil fuels and propel cleaner technologies like electric vehicles. By 2030, China has announced to get rid of polluting vehicles, India too is working on a policy to have 100% electric vehicles by 2030. Similarly, France and U.K. have set up a deadline of 2040 to be the year-end the sales of all fossil fuel-powered cars. Although U.S. has withdrawn from Paris accord, the states like California is taking climate change seriously. In an interview with Bloomberg, Mary Nichols, chairman of the California Air Resources Board has said that the state is pondering banning the sale of vehicles powered by internal-combustion engine.
To meet the goal of cutting CO2 emissions to 80% of 1990 levels by 2050, the state will have to take some step or other and banning IC engine automotive looks most likely and as said by Nichols cannot be written off. For this, the state may rely on legal means for the purpose as the likelihood of EPA waiver being approved by Trump administration is very less. Although any such decision is at least a decade away it will have a huge impact on the auto industry in California, it being the most populous state and having a significantly large auto market, selling around 2 million passenger vehicles in a year as an average. It needs to be seen what happens next but this definitely can be understood that electric vehicles are inevitable and sooner or later the automakers will have to align their businesses to this reality.