sales of electric cars in California are increasing from quarter to quarter and year to date thanks to staunch policy support from the state.
on November 1, 2023, that sales of battery electric cars accounted for 21.5% of new car sales in the Golden State during the first 9 months of the year and 22.3% in the third quarter. At the end of Q3 in 2022, sales of electric cars stood at 16.4%. In 2021, that number was 9.1%. So, despite all the weeping and wailing and gnashing of teeth lately about how the EV revolution is stalling, the news is pretty good, at least in California.
When hybrid and hydrogen fuel cell vehicles are included in the calculations, the figure jumps up 35.4% for all vehicles sold year to date in California. Not surprisingly this means gas-powered sales are falling in the state, with the CNCDA reporting ICE market share was 64.6% so far this year, down from 71.6% in 2022 and 88.4% in 2018.
We discussed the new law over watercress sandwiches at our daily confab in the organic vegetable garden of the roof of thetower today and agreed we didn’t understand all the nuances of the new legislation, but it seems clear that part about equitable fast charging is a slap in the face to Ford CEO Jim Farley, who a year agothat they install fast chargers at their stores if they wanted to be full fledged members of the Ford sales process for electric cars.
That part about post-sale subscriptions is also noteworthy. BMW has been the posterchild for greedy manufacturers by making access to seat heaters a subscription service for some models in some markets. People really don’t like being charged extra for features after they buy a car, and that is understandable. But we suspect what is really going on here is the dealers want to be cut in on those after-sale subscription fees. We’ll be curious to see how this plays out.
The big win for the dealers is the provision that prevents manufacturers who have an established dealer network from trying to create a new marketing unit that would sell directly to the public the way Tesla and Rivian do. It may be that the dealers are thinking about how Volkswagen is in the process of creating aVolkswagen is already marginalizing its dealers in Germany when it comes to selling electric cars.
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