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Market Chatter: Car Manufacturers Request US Congress to Block California 2035 EV Plan
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Market Chatter: Car Manufacturers Request US Congress to Block California 2035 EV Plan
May 25, 2025 8:09 PM

11:00 AM EDT, 04/28/2025 (MT Newswires) -- Car manufacturers, including General Motors ( GM ) , Toyota Motor ( TM ) , Volkswagen and Hyundai, are requesting the US House of Representatives to block California's plan to completely ban the sale of gasoline-only cars by 2035, Reuters reported Monday, citing a letter by the Alliance for Automotive Innovation.

The US Environmental Protection Agency in December 2024 granted California a waiver to allow at least 80% electric vehicles by 2035. The House is scheduled to vote later this week on legislation to repeal the waiver, the news report said.

Eleven states have already adopted this regulation, the report added.

The Alliance for Automotive Innovation, the trade association and lobby group whose members include international car and light-duty truck manufacturers, said the regulation will force the automakers to "substantially reduce" overall car sales to boost electric vehicle sales, the report states.

The Alliance for Automotive Innovation didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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