Retail sales of EVs have yet to fully take off in the US heartland states, according to new analysis from S&P Global Mobility. How come?
The top eight EV markets in the US are all in coastal states, and those markets represent more than half – 50.5% – of total EV registrations in 2022. The greater Los Angeles and San Francisco metropolitan areas alone account for nearly one-third of total share of the US EV market, which should really come as a surprise to no one.
The 22 heartland states represented 27.1% of total US vehicle retail sales through August, and their EV adoption rate has remained stagnant from 2021 into 2022, at 15.5%.
Interestingly, S&P reports that there isn’t much difference in the demographic and psychographic profiles of coastal and heartland buyers that are buying EVs:
There are just more of those types of people in Coastal and Smile states.
Caucasian buyers with high household incomes dominate both regions’ adopter bases. The only difference is that the central markets skew more toward a slightly younger demographic.
But both markets are seeing a decline in share from Caucasian buyers and an increase in Asian-American buyers, and they skew younger – 48% of Asian-American buyers were age 18-44. S&P asserts that younger buyers tend to be more open to new products and ideas.
So back to the original question: Why does the Midwest lag behind the coasts on EV adoption? S&P The report suggests:
A chicken-and-egg scenario might also be in play. The coastal cities have worked harder at creating charging infrastructures, as well as incentives for homeowners to install charging equipment in their garages.
James Martin, associate director of consulting for S&P Global Mobility, says:
There is no doubt that the lack of charger availability is an influence in midwestern states, but it is not the factor.
An equally strong factor is the availability of product in form factors that customers are willing to purchase.
There was no real option in terms of family-friendly, moderately priced CUVs. And some models, such as the Hyundai Kona EV, were initially not available in midwestern states – based on OEMs deciding to focus on [the 12] Section 177 (CARB) states where automakers could accumulate credits.
Now automakers are beginning to produce more mainstream electric vehicles. Availability of these vehicles will most likely be a factor in spurring installation of more charging infrastructure.
Tom Libby, associate director of Loyalty Solutions and Industry Analysis at S&P Global Mobility, sums it up:
That inflection point is when the product becomes generally accepted and it usually occurs when volume and exposure reach a level that influences all the reluctant outliers.
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On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.
Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Learn more by clicking here.
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The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.
The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.
These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.
The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.
Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:
Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.
In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.
The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.
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Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.
The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.
During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.
Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.
The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.
Kia’s new EV4 is now testing in the US
Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.
The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.
Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).
Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.
The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.
Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.
We will learn official prices closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.
Kia is teasing five new vehicles for the US, at least one being a new EV, that will debut at the LA Auto Show next week. Will it be the EV3? EV4?
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