Why Are California's EV Sales Dropping?
"After years of rapid expansion, California's booming EV market may be showing signs of fatigue," reports the Los Angeles Times, "as high vehicle prices, unreliable charging networks and other consumer headaches appear to dampen enthusiasm for zero-emission vehicles. "For the first time in more than a decade, electric vehicle sales dropped significantly in the last half of 2023..."Sales of all-electric cars and light trucks in California had started off strong in 2023, rising 48% in the first half of the year compared with a year earlier. By that time, California EV sales numbered roughly 190,807 - or slightly more than a quarter of all EV sales in the nation, according to the California New Car Dealers Assn. But it's what happened in the second half of last year though that's generating jitters. Sales in the third quarter fell by 2,840 from the previous period - the first quarterly drop for EVs in California since the Tesla Model S was introduced in 2012. And the fourth quarter was even worse: Sales dropped 10.2%, from 100,151 to 89,933... Propelled by the sales success of Tesla, and boosted by electric vehicles from other automakers entering the market, consumer acceptance of EVs had seemed like a given until recently. In fact, robust sales growth is a key assumption in the state's zero-emission vehicle plan... Under the no-gas mandate, zero-emission vehicles must account for 35% of all new vehicle sales by model year 2026.... Nationally, EV sales growth also has slowed as automakers such as Ford and General Motors cut back - at least temporarily - on EV and battery production plans. Hertz, the rental car giant, is also pulling back on plans to shift heavily toward EVs. Hertz several years ago announced plans to buy 100,000 Teslas but is now selling off its EV fleet. Corey Cantor, EV analyst at Bloomberg BNEF, an energy research firm, said that although recent sales figures are worrisome, there's plenty of momentum behind the EV transition, as evidenced by government mandates around the globe and massive investments by motor vehicle manufacturers and their suppliers. Those investments total $616 billion globally over five years, according to consulting firm AlixPartners. But EVs haven't reached "price parity" with gas-powered engines, the article points out, so just 7.6% of the vehicles sold last year in the U.S. were electric - while in California, the market share for EVS was 20.1%. The article also quantifies concerns about reliability of California's public charging system, which "according to studies from academic researchers and market analysts, can be counted on to malfunction at least 20% of the time." After $1 billion in state money for charger companies, the state's Energy Commission will now also start collecting reliability statistics, according to the article. But the article also cites wait times at the chargers. "Even if they were reliable, there aren't enough chargers to go around. EV sales have outpaced public charger installation." Some good news?The federal government is spending $5 billion nationally to put fast chargers on major highways at 50-mile intervals. California will receive $384 million. Seven major automakers have also teamed up to build a North American charging network of their own, called Ionna. The joint venture plans to install at least 30,000 chargers - which would be open to any EV brand - at stations that will provide restrooms, food service and retail stores on site or nearby.
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