Urvaksh Karkaria, Automotive News »

BMW, like its German rival Mercedes-Benz, is grappling with the realization that the world’s second-largest auto market remains half-hearted in its embrace of electric vehicles. Despite their proclamations of interest in battery-powered vehicles, few automakers other than Tesla have made much traction in the U.S. market with EVs.

Complicating their calculations, regulatory pressures in Europe and China are creating urgent need for EVs in those markets. Automakers face hefty fines in Europe next year if they fail to cut their fleet CO2 emissions to an average 95 grams per kilometer.

As a result, the German automakers are recalibrating their EV ambitions in the U.S. — diverting production supply to markets that are more receptive to the new technology, and biding their time for America’s interest to kindle.

Related » US market launch of Mercedes EQC delayed until at least 2021 due to lack of interest

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