Support for Electric Vehicles Tapers Among Local Governments
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Widely seen as successful, plug-in purchases are being incentivized less by cities.
Electric vehicles, sold for their fifth full year by major automakers, are well-established in the U.S., leading some local governments to reduce or eliminate purchase incentives for plug-ins, according to a new Navigant Research report.
Strong government support for plug-in electric vehicles (PEVs), through fuel efficiency regulations boosting supply and purchase incentives increasing demand, has been crucial to market development.
Automakers like General Motors, Nissan and Tesla are working on next-generation models stretching all-electric range up to 250 miles, dropping prices below $40,000 and decreasing charge time.
More direct current fast charging networks for inter- and intra-city travel are needed, which has electric power companies considering charging equipment subsidies, deployments and managed services reducing owners’ electricity costs.
But it’s not all good news for electric vehicles, according to the report:
Notably, the dive in oil prices that began in mid-2014 has not abated, and it appears the current low price may be a new norm. Additionally, now that many national markets have found solid footing, some local governments are beginning to phase out or completely remove purchase incentives for PEVs. Meanwhile, HEVs (which have largely been overshadowed by developments within the PEV market) have witnessed minimal growth over the last 3 years. This is largely a function of the competing PEV platform, but also of new efficiency technology adaptations to conventional platforms like stop-start systems.
Global light duty EV sales reached about 2.6 million in 2015 with PEV sales accounting for 19 percent of the total, per the report, and that number should reach between 5.8 and 6.4 million. By 2024, PEVs should represent 47 to 51 percent of the total.
Continued pushes to reduce carbon emissions and improve fuel economy will bolster PEV sales in the U.S.
Read Navigant Research’s full report here.
Dave Nyczepir is a News Editor at Government Executive’s Route Fifty.
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