The Biden administration is reportedly considering loosening the EV rule on tailpipe emissions.

According to the New York Times, sources close to the Biden administration reveal that they plan to loosen restrictions on emissions from tailpipes in order to encourage Americans to switch from gasoline-powered vehicles to electric ones.

The report suggested that the administration may delay the requirement for car manufacturers to quickly increase sales of electric vehicles and instead provide them with more time, which could be announced in early spring.

If the shift occurs, EV sales will not need to increase significantly until after 2030.

The president and CEO of the auto industry trade group the Alliance for Automotive Innovation (AAI), John Bozzella, stated on Sunday that the next three to four years are crucial for the growth of the EV market.

Bozzella advised giving the market and supply chains time to adjust, allowing customers to continue making choices, increasing public charging options, and allowing the industrial credits and Inflation Reduction Act to take effect and influence the industrial transition.

The White House is considering implementing Environmental Protection Agency regulations that would significantly decrease tailpipe emissions, with the goal of increasing the U.S. electric vehicle market share to 67% by 2032 from its current 8%.

According to a Reuters analysis of automakers' sales data and a review of comments to regulators, Fiat Chrysler Automobiles (FCA), the European parent of U.S.-based Ram and Jeep, has warned that they cannot profitably transition their truck-heavy U.S. fleets that quickly.

The AAI and automakers have urged the Biden administration to slow the proposed increase in EV sales. They argue that EV technology is still too expensive for many mainstream U.S. consumers and more time is required to develop the charging infrastructure.