How Governments Invest In Local Car Markets

Technology has changed the automobile industry in the recent past. Governments invest in car markets in different ways. They aim at providing a conducive environment for car manufacturers and to provide more jobs. Electric cars are popular in Europe and the United States. Other continents are slowly adopting the new car manufacturing technology. It will end the use of fossil fuels thus conserving the environment. In this post, we explore four ways that governments are investing in local car markets.

1.    Government Car Assistance Programs

Many people aren’t financially endowed to buy new automobiles. Also, it is hard for large families to use public transport. The American government offers free vehicles to successful applicants of the government car assistance program. You can seek help from state and federal governments.

Some governments offer limited auto donations each year. Applicants can use them to repair existing cars or purchase new ones. It is advisable to search for grants on your state’s website frequently. Usually, governments disburse funds to non-profit organizations and public transit systems. Charity Automobiles provides vehicles to poor families that cannot get online pokies casino winnings to buy cars.

2.    Grants for Electric Cars

The United Kingdom government has announced that it will soon reduce the grants it offers for people to buy electric cars. It will create clean air zones next year to reduce air pollution in Nottingham and Birmingham. The government is planning to ban car manufacturing from producing diesel and petrol cars in 2040. Recent statistics show that close to 36,000 people die in Britain each year due to air pollution.

3.    Financing Research and Development

Emerging car manufacturing technology is expensive. It will take a while before the manufacturers reach the breakeven point. The United States Department of Energy has been providing research grants for many years. It encourages investors to collaborate with leading car manufacturers to lower the cost or alternative fuel automobiles. David Howell, the U.S. Vehicle Technologies Office (VTO) program manager, revealed in an interview that extensive research has helped the Department of Energy reduce the cost of hybrid-electric car batteries.

The Vehicle Technologies Office is aiming at doubling the density of car batteries soon. It will extend the driving range of electric cars and reduce the weight of their batteries by half. They are more energy-efficient than hydrogen-fuel and gasoline-powered vehicles.

4.    Consumer Incentives

Governments are providing consumer incentives to encourage people to buy alternative fuel automobiles. They include tax breaks and state incentives that reduce the price of electric cars. Georgia has an aggressive incentive program in the U.S. The state government offered a $5,000 tax credit to people who bought electric cars in 2015. Statistics from the International Council on Clean Transportation shows that electric cars comprise two percent of all vehicles in Georgia.

Many developed countries are shifting from gasoline-fueled to electric cars. Old car models produce toxic fumes that increase global warming. Besides, they are noisy and fuel inefficient. Many governments are encouraging people to buy electric cars and replace old vehicles. Some states form partnerships with leading car manufacturers while others give people grants for electric cars.