In New Mexico, mandates requiring auto dealers to stock a growing number of electric vehicles (EVs) will stay, despite a legal challenge from the New Mexico Automotive Dealers Association. This decision comes after state regulators, the Environmental Improvement Board, voted in favor of continuing the implementation of these new rules. The move aligns with Democratic Governor Michelle Lujan Grisham's push towards increasing EV availability to reduce emissions and combat climate change, aligning with stricter vehicle emissions standards and zero-emission vehicle inventory requirements.

However, this decision has sparked controversy among local auto dealers and political figures, including Navajo Nation President Buu Nygren, who argue that the mandates could negatively affect rural communities lacking in EV infrastructure and raise affordability issues. The debate extends to the state's legislative minority, criticizing the practicality of these mandates in New Mexico’s vast landscape.

The regulations set ambitious goals: by 2026, 43% of new passenger cars and light trucks delivered to New Mexico dealers must be zero-emission, escalating to 80% by 2032. While environmental groups like New Mexico Clean Air laud these standards for their potential to reduce pollution and dependency on gasoline, opponents, including prominent auto dealers, warn of significant socio-economic impacts, arguing that the EV market is not yet sufficiently robust to support these mandates. They also criticize the state's tax incentives for electric vehicles as being too restrictive and unhelpful for most consumers. The situation in New Mexico highlights the complex balance between advancing environmental goals and addressing economic and infrastructural realities.