From Investing.com: 2024-09-15 02:30:00

The November U.S. presidential election will impact Japanese automakers based on policies regarding climate change, trade, and regulations. A Trump win could relax greenhouse gas regulations and nullify California’s stringent zero-emission vehicle mandates, easing pressure on EV production. However, revoking EV tax credits may hinder adoption, affecting Japanese automakers’ competitiveness.

Conversely, a Harris victory would maintain strict climate policies, potentially penalizing automakers failing to meet ZEV targets. Japanese companies lagging in EV development like Mazda and Nissan could face fines up to $20,000 per vehicle for non-compliance. Toyota and Honda, with advanced EV strategies, may fare better under a Harris administration.

The U.S. struggle to meet ambitious EV sales targets poses challenges for automakers, with BEVs accounting for only 8% of the market. Despite regulatory demands, scaling up ZEV production at the required pace remains a concern. A Harris administration is unlikely to ease regulations due to a strong commitment to climate change initiatives.

Trade policy under a Harris administration, especially in relation to China, may pose challenges for automakers relying on Chinese imports for EV parts. Although this may not impact Japanese automakers as severely as U.S. automakers, global supply chain constraints could still present operational hurdles.



Read more at Investing.com: What’s the impact of the November US presidential election on Japanese automakers? By Investing.com