Yr-end market knowledge for the Southeast exhibits continued development and nationwide management in EV manufacturing investments and jobs. We additionally see development in gross sales, charging station deployment, and public funding, regardless of our area lagging nationwide averages.
Stan Cross | March 7, 2024
| Clear Transportation, Electrical Autos
The Southern Alliance for Clear Vitality (SACE) and Atlas Public Coverage crunched numbers for our 2023 end-of-year state and regional knowledge replace to convey extra present data to layer onto our 2023 Transportation Electrification within the Southeast report. We discovered that the electrical automobile, truck, and bus markets proceed to develop quickly throughout practically all indicators regardless of current media tales on the contrary, which we are going to look at in a forthcoming weblog.
Southeast Electrical Transportation Indicators as of December 31, 2023
A better take a look at regional light-duty EV gross sales exhibits that general development is pushed by will increase throughout automakers as they compete with Tesla, which stays the dominant model. EV market share as a proportion of recent automobile gross sales ended the yr at a regional common of seven.5%.
Southeast Mild Obligation EV Gross sales and Market Share
A better take a look at market share, indicator of shopper sentiment, exhibits variation amongst states and continued regional lagging behind nationwide averages. Florida, Georgia, and North Carolina lead the pack, with Tennessee, South Carolina, and Alabama trailing.
Southeast Mild-Obligation EV Market Share (Proportion of New Gross sales)
Manufacturing competitors amongst states heats up
The most important EV tales from our area in 2023 proceed to be these round manufacturing investments and jobs. Georgia leads the area and the nation in each classes, with North Carolina transferring to the #2 spot regionally forward of #3 Tennessee and South Carolina at #4. These 4 Southeast states are all within the nation’s high eight EV manufacturing states, serving to the Southeast safe practically a 3rd of the nation’s anticipated EV manufacturing jobs so far.
EV Manufacturing Amenities
The area’s manufacturing increase is a part of a broader nationwide home manufacturing buildout pushed by Made-in-America incentives within the Inflation Discount Act (IRA), together with manufacturing and shopper tax credit. These incentives are supposed to shore up the home provide chain and enhance jobs, a lot of that are touchdown in underemployed, rural communities throughout the Southeast.
Waiting for 2024
One thing to look at in 2024 is the rising regional political energy of EV, battery, and provide chain corporations; and the essential impacts it has on state-level EV insurance policies. To this point, the governors of Georgia, North Carolina, Tennessee, and South Carolina have been very supportive of EV manufacturing growth, enacting govt orders, working carefully with financial improvement businesses, and inspiring legislators to enact legal guidelines to make their states extra enticing to home and worldwide companies seeking to make investments.
However, as proven in our 2023 Transportation Electrification within the Southeast report and our year-end updates, the area’s policymakers have largely stopped in need of passing insurance policies to encourage and help electrical automobile, truck, and bus adoption; and in lots of cases, have even handed or are attempting to go unsupportive measures akin to extreme EV taxes, preemption of state and native EV-ready constructing codes, and restrictions on regulatory authorities. Sadly, 2024 is unlikely to end in supportive EV insurance policies within the area’s hyperpolarized election-year state homes.
The approaching yr may also see the accelerated deployment of the Nationwide EV Infrastructure (NEVI) program, funded by the Bipartisan Infrastructure Legislation (BIL). This program will add $5 billion of quick chargers each 50 miles alongside America’s highways. This buildout will assist take away some of the important boundaries to mass market adoption: the dearth of accessible and dependable public charging.
Lastly, gross sales are prone to proceed increasing all through 2024, as showcased in J.D. Powers’s 2023 research, which revealed that 26% of recent automobile consumers say they’re “very probably” to think about buying an EV and 61% are “general probably.” Questions stay round whether or not legacy automakers can efficiently pivot and get promised 2024 electrical makes and fashions to showrooms, in addition to how profitable shopper advertising and consciousness campaigns might be at participating and provoking customers. Shopper Experiences Electrical Car Survey discovered that solely 5% of customers have important direct EV expertise, whereas 34% have none. The survey additionally discovered that buyers’ willingness to buy an EV will increase as direct EV expertise will increase, making getting shopper butts in EV seats a precedence.
The Southern Alliance for Clear Vitality’s Electrify the South program leverages analysis, advocacy, and outreach to speed up the equitable transition to electrical transportation throughout the Southeast. Go to ElectrifytheSouth.org to study extra and join with us.
