America's Love-Hate Relationship With Electric Cars Intensifies

Electric Vehicles /9 Comments

Overall EV adoption is up, but not all states are on board.

While the automotive industry'sfuture is likely electric, not all US states seem to be heading in that direction, and the latestE-Vision Intelligence Reportby J.D. Power shows a decline in the year-over-year adoption rates in some states. The broader picture is that while some states remain very EV-positive, there seems to be a broadening gap between states that favor EVs and those that don't.

Michigan, Iowa, Kansas, Arkansas, Mississippi, Wyoming, Louisiana, South Dakota, West Virginia, and North Dakota are the states showing the biggest slowdown in EV adoption. Unsurprisingly, the analytics firm projects the aforementioned states will have the lowest EV adoption rates by 2035, with North Dakota only projected to boast a 19% EV market share.

The adoption rate measures the percentage of consumers who buy an EV given their preferred price range and vehicle class are met.

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In contrast, California has the highest EV adoption rate and is projected to reach 94% EV market share by 2035. San Francisco even reached anew milestoneof selling 50% electrified vehicles earlier this year, according to a report by S&P Global Mobility.

Under to theClean Cars II Act, California will ban the sales of ICE cars by 2035. Other states, includingNew YorkandNew Jersey, will follow the same timeline, so it makes sense for these states to have higher adoption rates.

The top 10 states with the highest overall EV adoption rates include California, Washington, Hawaii, Oregon, Nevada, Maryland, Arizona, Colorado, Utah, and Massachusetts. These states also registered improved adoption rates in the year's first half.

The J.D. Power report shows a one-point increase (now at 21) on its 100-point index for overall EV adoption year-over-year.

J.D. Power J.D. Power J.D. Power

The report also describes how an increasing number of new luxury EVs, such as theCadillac Escalade IQand Tesla Cybertruck, could affect the affordability of EVs amid the lack of entry-level models. In turn, the price parity of EVs with ICE cars could discourage some consumers from making the switch.

The lack of incentives could also be another reason why some grow while some decline in EV adoption rates. In California, the state is offering a $7,500 incentive - on top of the federal tax credit - under theClean Vehicle Rebate Program(CVRP), allowing consumers to get EVs like theTesla Model 3for just around $25,000.

Of course, the future isn't set in stone, and 2035 is still over a decade away, so expect fluctuations in the way people adapt to electrification. Reports like this, however, give us a clear picture of which states are ahead of the curve and which ones are lagging behind.

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