Considering the country as a whole, Americans are buying more electric vehicles (EVs) than ever before. But, taken state-by-state, EV sales are rising slowly in some places and shrinking quickly in others.
That’s the conclusion of a new report from the researchers at J.D. Power. Its E-Vision Intelligence Report tracks EV retail market share and availability to determine how often consumers who have an EV option in their preferred price range and size choose to buy it.
Nationwide, 21% Choose an EV When It’s Available
The study found that “a stark division is emerging between the top 10 states for EV adoption, where EV adoption rates are growing steadily, and the bottom 10 states for EV adoption, where year-over-year average adoption rates are declining.”
Related – Survey: America’s Divide on EVs Grows
J.D. Power found EV sales now represent 8.6% of the total new vehicle market. Twenty-one percent of shoppers who had an EV option in their preferred size and price range chose to buy it. That figure increased by 1% from last year.
But in the bottom 10 states, adoption shrunk by nearly a quarter in that same period.
State Policies May Be Driving the Divide
California, Washington, Hawaii, Oregon, Nevada, Maryland, Arizona, Colorado, Utah, and Massachusetts all “have continued to see EV adoption rates grow steadily, climbing year-over-year through the first half of 2023,” the report says.
But Michigan, Iowa, Kansas, Arkansas, Mississippi, Wyoming, Louisiana, South Dakota, West Virginia, and North Dakota have all seen adoption rates decline.
The difference? Some states have “been aggressive about offering incentives and building infrastructure to support EVs,” while others have not.
Dealers may be following the trends in their region. One recent survey of dealers found that two-thirds have no EVs in stock to sell. Nationwide inventory numbers show that dealers have a larger supply of EVs than gas-powered cars compared to sales rate. But that supply may be concentrated in some areas.
In 12 Years, the Gulf Could Be Massive
Projected out over the next 12 years, the difference grows stark. “California, for example, which currently has the highest EV adoption rate in the nation, is projected to reach 94% market share by 2035. North Dakota, by contrast, which currently has the lowest EV adoption rate, is projected to have a 19% EV market share by 2035,” the researchers found.
