ALBUQUERQUE, N.M. — Mandates for auto dealers to offer an increasing number of electric vehicles for sale across New Mexico remain in effect as state regulators on Friday denied an attempt to derail implementation of the new rules pending a legal challenge.
Members of the state Environmental Improvement Board voted 4-1 after closed-door deliberation, dealing a setback for the New Mexico Automotive Dealers Association as it continues its challenge before the state Court of Appeals.
Democratic Gov. Michelle Lujan Grisham has pushed for more electric vehicles in the state, saying it will reduce emissions and help address climate change. The state has adopted stricter standards for vehicle emissions and established mandates for zero-emission vehicle inventories, drawing praise from environmentalists.
But local car dealers and others, including Navajo Nation President Buu Nygren, are concerned the mandates will have negative impacts, especially on rural communities that lack electric vehicle charging infrastructure. They have also argued that affordability is an issue for consumers in the Navajo Nation and across New Mexico.
Republicans in the legislative minority have also criticized the governor’s plans as impractical, citing the distance many people have to travel in New Mexico — the fifth-largest U.S. state, though sparsely populated.
Beginning in 2026, 43% of all new passenger cars and light trucks shipped by national automakers to New Mexico auto dealers must be zero-emission vehicles. The rules also require that 15% of all new commercial heavy-duty trucks be zero-emission vehicles.
By 2032, four out of five passenger cars shipped into the state by manufacturers should have zero emissions.
“These standards are poised to reduce harmful tailpipe pollution and save lives as they reduce New Mexico households, businesses and economies’ dependence on volatile and expensive gasoline that harms our climate,” said the advocacy group New Mexico Clean Air said in a statement after Friday’s meeting. to vote.
The Albuquerque-Bernalillo County Air Quality Control Board, which covers the state’s most populous area, also supports the rules.
As New Mexico continues its clean car initiatives, federal regulators have opted to relax initial tailpipe limits proposed last year. That decision followed news that electric vehicle sales began to slow in December.
Carlos Garcia, of Garcia Automotive Group, one of the largest auto dealer networks in the state, had testified that the EV market was flat, despite claims from environmentalists. He pointed to recent announcements that Toyota, Honda, Ford and other major manufacturers were reducing their forecasts and EV spending.
“It is clear that this rule has far-reaching consequences beyond air quality and will have a social and economic impact on every New Mexican, not just car dealers and the thousands of auto industry workers,” he said in written testimony . “The economic implications this rule imposes on all New Mexicans will cause irreparable harm to many.”
Critics also said the tax incentives for electric vehicles promised by Democratic legislative leaders are income-restricting and capped at prices that ultimately exclude much of the market. Garcia said no pickup trucks would qualify for the incentive.
Some board members had wondered during the March hearing whether delaying implementation of the mandates would signal a slowdown in momentum in New Mexico. Dealers argued the market is not yet ripe, but environmentalists said the state would be among the leaders nationally if it stuck to its emissions standards and benchmarks for electric vehicle sales.