When it comes to the automobile industry, times are certainly changing!
While gas-powered vehicles have ruled the road for the past century, electric vehicles have made significant progress in the past few years.
Industry experts believe that by 2035 or 2040, more than half of the new cars sold will be EVs.
The quick pivot over to EVs is being made by a high demand for electric vehicles, as well as environmental regulations being implemented across the country and world aimed at significantly reducing emissions.
But what does that mean for the future of internal combustion engine vehicles (ICEVs)?
This article will discuss what the future might hold for gas-powered vehicles and whether gas will be available for purchase after 2035.
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Will Gas Be Available After 2035?
You will still be able to get gas at local gas stations after 2035 though electric cars will start to be the norm. However, many gas stations may close as they will lose revenue. Pivoting into becoming a charging station is costly and may not be possible for small independent gas stations.
Let’s look into the facts.
Can you still buy gas cars after 2035?
We’ve seen lots of cities starting to ban gas cars.
It’s highly likely gas cars – at least used models – will still be available to buy. However, only time will tell. We should have a better idea about whether gas cars will still be available to buy after 2035 in the coming years.
Some of the things we do know that can shed more light on this question include:
- In the past two years, the governors of 12 states – California, Connecticut, Hawaii, Massachusetts, Maine, New York, North Carolina, New Jersey, New Mexico, Oregon, Rhode Island, and Washington – signed bills banning the sale of new cars and passenger trucks by the year 2035. The state of Washington’s bill bans those sales starting in 2030.
- None of the bills target the sale of used gas-powered vehicles.
- There is currently no upcoming ban for the sale of new gas-powered vehicles in the other 38 states, although that could change in the coming months and years if more states join the list of 12.
- President Biden has proposed legislation that would pump billions of dollars into expediting the electric vehicle industry, including a tax credit for buying EVs and building a network of charging stations across the country. However, he has not introduced legislation or supported talks of a nationwide ban on the sale of new gas-powered vehicles.
What if you purchase a gas car in another state?
As of now, there doesn’t appear to be a way to prevent people who live in one of the 12 states such as California or New York from buying a new gas-powered car in another state that hasn’t passed legislation.
The laws only mention banning the sale of new gas-powered vehicles in their respective states.
However, the 12 governors of these states have urged President Biden to consider a nationwide ban on the sale of ICE vehicles by 2035 to align with their goals and prevent people who live in their states from buying gas-powered cars from neighboring states that have not passed laws.
As of now, this appears to be a political issue between the two parties, as 11 of the 12 governors are democrats.
What exactly may happen in 2035 for gas-driven cars?
Only time will tell what the future holds for gas-powered vehicles, but it’s safe to say it’s cloudy at best.
Automotive industry experts predict that by 2035 to 2040, about 60% of the vehicles on the road will be EVs, significantly cutting into the demand and production of ICE vehicles.
What we do know, is that the aforementioned governors of 12 states have banned the sale of new gas-powered cars and passenger trucks by 2030 or 2035, and more states could follow suit in the coming months and years.
The Biden Administration is proposing legislation that would pour billions of dollars into the EV industry in the form of tax credits for buying electric vehicles and building a strong infrastructure of EV charging stations across the country.
This all causes an increased political push for electric cars.
One of the biggest factors that may affect the landscape for gas-powered vehicles in 2035 and beyond is whether the Biden Administration or future presidents will follow suit with many other countries across the globe and enact a nationwide ban on the sale of gas-powered vehicles.
But it’s not just legislators who are making the move to zero-emission vehicles shortly. The biggest auto manufacturers are also taking note.
General Motors plans to sell only zero-emission vehicles by 2035, while Volvo plans to go all-electric in 2030.
Ford plans to go all-electric in Europe by 2030, while Nissan plans to sell only EVs in key markets, including the United States, by the early 2030s.
Many high-end auto manufacturers such as Audi, Jaguar, Alfa Romeo, and Roll-Royce plan on selling only battery-operated cars before the end of this decade.
Although sound logic would indicate that gas-powered vehicles will still be on the road in 2035, the path legislators and auto manufacturers are moving toward indicates a rapid decline in the years following.
Should we expect gas stations to disappear?
Many gas stations will likely go out of business in the coming years due to the expansion of the electric vehicle industry.
For gas stations to remain relevant and profitable in 2030 and beyond, they will likely have to revolutionize their services.
According to the National Association of Convenience Stores, there are 120,000 convenience stores in the United States that also sell fuel for vehicles.
Although there are varying estimates, Boston Consulting Group estimates that 25% to 80% of these gas stations could be unprofitable by 2035 – just 13 years from now.
Ironically, gas stations make very little money off the gasoline they sell. The margin is about 15 cents per gallon; however, after expenses including labor, freight, and credit card fees, the average gas station ends up with about a 2-cent profit per gallon.
Selling gas is what gets customers to stop, but it’s what’s sold inside the gas station – or convenience store – that helps these businesses turn a profit.
If traditional gas stations are going to survive, they’ll have to start reinventing their businesses soon, although that ultimately could prove difficult to impossible.
Will gas stations become charging stations?
Some traditional gas stations have installed Level 3 chargers that can provide a 20-mile range per minute.
However, many gas stations are mom-and-pop shops that are locally owned, and the benefits of installing several electric vehicle chargers are just not attainable.
Buying and installing EV chargers at current gas stations can cost tens of thousands of dollars!
On top of that, it’s expected that most owners of EVs will have at-home charging stations. The government also plans to build a new infrastructure of gas stations across the country.
But the news isn’t all bleak for gas stations.
One advantage that gas stations do hold over other types of business is that many are ideally located at busy intersections that receive a lot of traffic.
Gas stations could revolutionize themselves by providing online ordering for food, adding small restaurants at the location, and maybe adding mechanical services such as oil changes, tire rotations, and light repair work.
Does this impact cars purchased before 2035?
So far, the legislation doesn’t impact gas-powered vehicles bought before 2035. The bans only apply to the sale of “new” gas-powered cars and passenger trucks.
People will still be able to buy and sell used gas-powered cars in 2035 and beyond.
And there currently is nothing stopping drivers in any of the 12 states from buying a new gas-powered car in a neighboring state without a ban.
How may this affect gas prices?
It’s unclear how the expected rise in electric vehicle sales will ultimately impact gas prices. When gas prices skyrocketed to $5 or more earlier this year, interest in EVs also soared.
It’s possible that the oil industry could respond to an increase in electric vehicle sales by cutting gas prices to some of their lowest levels in recent years.
But only time will tell what the future is for gasoline and gas-powered vehicles.