Expansion of Loan Guarantee for Electric Vehicle in the United States

United States: According to the press release by the White House, Federal government is expanding the loan guarantee program for companies manufacturing electric vehicle (EV) charging stations. This is considered as an effort to increase the demand for electric vehicles in the country.

The Department of Energy of United States has issued a notice depicting the importance of electric vehicles, including the value of hardware and software being used in these vehicles. The program would enable the companies to get a loan up to USD4.5 billion for projects related to renewable energy and energy efficiency.

The Energy department said EV charging stations could be considered as competent technology for electrical transmission or distribution and expanding federal loan programs to such projects would be an important move for the industry’s growth.

Tesla Motors Inc., General Motors Co, Ford Motor Co, Nissan Motor Co, BMW AG, Daimler AG, Duke Energy Corp and Consolidated Edison Inc. are among the companies joining the effort to boost EV charging.

According to a recent report published by TechSci Research, “United States Tyre Market Forecast & Opportunities, 2020”, replacement tire segment accounted for more than 80% share in the United States tire market in 2014. However, the share of replacement tire segment is expected to decline over the forecast period, due to faster growth anticipated in the OEM tire segment. Passenger car tire segment accounted for the largest volume share of more than 80%, in the market in 2014, followed by light commercial vehicle, medium & heavy commercial vehicle, OTR and two-wheeler tire segments. Major tire players operating their tire manufacturing facilities in the US include Bridgestone, Goodyear, Continental, Pirelli, Michelin and Yokohama.

TechSci Research believes that, the decision undertaken by the Federal government of United States to expand the loan guarantee to companies engaged in manufacturing electric vehicles will enhance the demand of electric vehicles and is further anticipated to fuel the market for high performance and ultra-high performance tires in the country.