America Will Remain Deeply Divided In Long-Term EV Adoption: Report


Electric vehicle adoption will continue to be deeply divided in the United States, and a few regions are likely to lead the charge, rather than the nation as a whole, as per JD Power’s 2023 E-Vision Intelligence Report.

Even though EV sales now represent 7.1 percent of the retail automobile market, with the first two quarters of 2023 witnessing a steady increase, the regional variation will remain stark.

The top 10 states where consumers are enthusiastic about zero-emissions vehicles include California, Oregon, Hawaii, Washington, Nevada, Maryland, Utah, Colorado, Arizona, and Massachusetts. States where EV adoption is lacklustre include Kansas, Iowa, Michigan, Mississippi, Wyoming, Louisiana, South and North Dakota, and West Virginia.

JD Power projects 70 percent of all new vehicles to be electric by 2035, with California estimated to reach 94 percent market share by then. The state already leads EV incentives with multiple programs like the Clean Vehicle Rebate Project (CVRP) and Clean Cars 4 All program among others, encouraging wider adoption of Tesla models and other EVs.

On the other end of the spectrum, JD Power expects North Dakota, which currently has the lowest EV adoption rate, to have a 19 percent statewide EV market share by 2035. South Dakota is estimated to have a 35 percent EV penetration, while Michigan could grab 41 percent of the pie by the same timeframe.

Only the Tesla Model Y has achieved price parity with equivalent gas-powered vehicles, as per the report. In the compact premium SUV segment, the Model Y accounted for one in three EVs sold year-to-date. It starts at $47,740 (before taxes and fees) and is similarly priced compared to the BMW X3, Lexus NX 350, and Mercedes-Benz GLC among others.

Other notable mentions include the Chevrolet Bolt EV and the Hyundai Kona Electric, which scored over 100 points in JD Power’s affordability index. However, expensive halo EVs like the Cadillac Escalade IQ are likely to gobble up automakers’ marketing budgets before they can democratize affordable EVs and scale up manufacturing, the report indicates.

The demarcations between states could be due to geographic, political, socio-economic, and cultural divisions. However, a single study is unlikely to accurately forecast the fate of the EV industry, so take these estimates with a grain of salt. Changes in policy, charging infrastructure, and availability of affordable EVs could impact the outcome.

As per JD Power, the aforementioned results emanated from millions of data points funneled into six categories: experience, interest, adoption, availability, infrastructure, and affordability. What’s your stance on EV adoption? Leave your thoughts in the comments.



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