Conscious Consumer: EV Adoption Accelerating

Have you been toying with the idea of getting a new vehicle? Well, you are not alone. Fueled by stimulus checks, increased savings from staying home in 2020, and prospect of returning to work safely by commuting in one’s own vehicle vs. using public transportation (unfortunately), Q1 2021 (YOY) total US vehicle sales rose by 11.4%, to 3.9 million vehicles.  Electrified vehicle (EV) sales growth of 81% far outpaced industry growth. Sales of electric vehicles – battery only – grew by 44.8%, to nearly 100,000 sales. Sales of hybrid vehicles grew by 105.5% to more than 200,000. While EV sales are accelerating, they represented 7.7% of total vehicle sales in the quarter.

What is fueling this growth in EVs? Consumers are increasingly realizing that EVs offer many benefits, including:

  • Enjoyable ride from rapid acceleration and smooth quiet ride
  • Positive environmental impact–cleaner air, reduced green house gas (GHG) causing climate change
  • Financial savings–incentives that lower net purchase cost, and lower operating costs for electricity (vs. gas), maintenance, bridge tolls, parking
  • Other perks–such as traveling in HOV lanes with one passenger.

Check out Drive Clean Bay Area to learn more about “How to EV” and download the EV Buying and Driving Guide.

Short-term, there may be speed bumps due to higher vehicle prices resulting from current buyer demand exceeding supply. Scaled back vehicle production during the pandemic coupled with computer chip shortages have crimped new vehicle supply. These new vehicle market imbalances cause used vehicle inventories to shrink and prices to increase as well. Additionally, California’s Clean Vehicle Standard Rebate program has exhausted its funding so it will be winding down shortly. 

However, if you plan to purchase a vehicle in the next six to twelve months, this is a good time to do your homework and scout EV options as the landscape is evolving, with many favorable trends on the horizon:

Greater Vehicle Choice – More manufacturers will be launching numerous new EV models later this year, creating more vehicle and price point options for consumers, as well as competition for current market leaders. Here are the EV Sales Report for 1Q 2021, current EV makes and models , and upcoming EV vehicles.

Longer Driving Range – More EVs models have driving ranges at or above the 300+ mile range tipping point.

Numerous Financial Incentives – Despite California’s EV rebate program ending soon, other EV financial incentives are still plentiful and attractive.  With so many different types of rebates, tax credits, and financial need-based grants, it really pays to do the research. Depending on the type of vehicle, dealer, your location, utility provider, club memberships, and income level, these financial incentives can shave 20-50% off the vehicle list price. The timing for realizing these financial incentives varies.  For instance, you need to apply for the financial need-based grants prior to the vehicle purchase. Federal tax credits are realized on your annual tax return, for an amount equal to the lesser of the tax credit or federal income tax due. For more information about EV financial incentives or to book a consultation, check out Acterra GoEV.

Fast Charging Options – Less anxiety over driving range, achieved from plugging into charging networks such as Chargepoint , EVGo, and Electrify America, as well as using smart phone apps (PlugShare, A Better Routeplanner) for locating Level 3 (rapid) charging stations.

Government Climate-Friendly Programs – The Biden $2.3 trillion infrastructure bill includes funding for extending/expanding EV financial incentives, increasing EV charging stations, as well as investments in renewable energy & electricity infrastructure. California has set a target of 2035 for all new vehicles sold in the state to be zero-emission vehicles. So, there is a decent possibility that the state could rollout other EV financial incentive programs (subject to securing new funds). 

Utility Climate-Friendly Programs – Be sure to check out your energy provider (Community Choice Energy or PG&E) for their programs on EV and/or charger discounts.

Technological Innovation – New technologies are evolving to share your 240V dryer outlet with your EV charger; increase EV battery range and shorten charging time; as well as enable EVs to send power back to the grid or serve as a backup power supply.

Electricity Infrastructure Upgrades – Forward looking utility providers and cities are looking at ways to scale up the electricity infrastructure—including electricity generation and distribution capabilities as well as updated building codes to meet the growing demands for electricity. Existing residences and commercial buildings will also require retrofitting to support increased electricity demand as electric vehicle adoption rises.  

There is no time like the present to start exploring how EVs (and electric bikes) can transform your transportation experience.