California is and likely will remain the largest market for zero emission vehicles in the United States because of the state’s increasingly stringent ZEV mandate. California accounted for 40% of ZEVs in the United States, as of last January.
The next set of ZEV requirements will take effect in 2017 through 2025. As a result, zero emission vehicle sales of close to 60,000 units in 2014 are expected to grow to 1.4 million units by 2025.
“The stringency of California’s mandate will steadily go up in terms of the required proportions of ZEVs in fleets, changing the mix of cars on sale in the state,” said Frost & Sullivan Research Analyst Sudeep Kaippalli. “Meanwhile, support and incentives from the government will follow at a slower but significant pace.”
It is thought that by reducing purchase costs and expanding non-monetary incentives will widen the potential customer base for zero emission vehicles. Purchase incentives for ZEVs have been extended to 2015 as well: fuel cell EVs (FCEVs) receive $5,000; battery EVs (BEVs) $2,500; and PHEVs get $1,500 as purchase rebates. A statewide government parking policy for ZEVs already in place is providing another incentive for ZEV leases. Access to high-occupancy vehicle lanes is another prompt for sales.