New Mexico rejects automakers’ request to halt EV mandate amidst legal challenges

New Mexico regulators denied automotive dealers’ request to pause a mandate that would put a quota on the number of electric vehicles sold.

The 4-1 decision by the members of the state Environmental Improvement Board comes as the New Mexico Automotive Dealers Association pursues to challenge the mandate before the state Court of Appeals, according to the Associated Press.

In an effort to curb emissions and mitigate climate change, Gov. Michelle Lujan Grisham (D-NM) has pushed for more electric vehicles.

However, car dealers and others are concerned that the mandates for zero-emission vehicles will negatively affect rural communities that lack electric vehicle charging infrastructure. Republicans in the legislative minority have called the move “impractical,” considering the long ranges people have to drive in New Mexico — the fifth-largest state by area.

Navajo Nation President Buu Nygren told the outlet of his concerns about the affordability of vehicles to members of Navajo communities. According to Kelley Blue Book, the average price for an electric vehicle was $53,469 in July 2023.

The mandate requires that by 2026, 43% of new passenger cars and light-duty trucks sold at auto dealerships must be zero-emission vehicles. Of new commercial heavy-duty trucks, 15% must be zero-emission. And by 2032, 80% of cars that manufacturers ship to the state must be zero-emissions. The mandates have garnered the praise of environmentalists.

“These standards are poised to slash harmful tailpipe pollution and save lives as they make New Mexico households, businesses, and economy less tethered to volatile and costly gasoline that damages our climate,” a statement from advocacy group New Mexico Clean Air reads.

Meanwhile, federal regulators relaxed limits on tailpipes when electric vehicle sales began to slow.

Carlos Garcia with Garcia Automotive Group pointed out that Toyota, Honda, and Ford have announced cutbacks in EV spending.

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“It is clear that this rule has far-reaching effects beyond air quality and will impact every New Mexican socially and economically, not just car dealers and the thousands of employees in the automotive industry,” Garcia said in written testimony. “The economic implications this rule forces on all New Mexicans will cause irreparable harm to many.”

Critics also say that tax incentives for electric vehicles are income-restricted, capped at prices that exclude most of the market.