in 2025, driven by consumer interest,
expanding charging infrastructure, and
cities and countries that have enacted
regulations that favor electrification.
American consumers have told
us that they’re open to buying EVs:
36 percent of prospective car buyers
in the Consumer Reports 2019 Plug-In
Electric Vehicles survey said they
would consider getting a plug-in
electric vehicle for their next new car.Driving Forces
According to Scott Shepard, a senior
analyst at automotive research andconsulting firm Navigant, regulatory
pressure in Europe and China, as well
as in select U.S. states and Canadian
provinces, is the strongest driver of
EV growth. “Emission standards will
continue to get stricter, with eventual
bans on new internal-combustion-
engine sales in some cities and
countries,” he says.
Stephanie Brinley, IHS Markit
principal automotive analyst, notes that
nations worldwide are pushing hard to
lower emissions from cars. “You can
expect regulations will get harder, and
they will get tougher,” she says.Road Report Electric Cars Come of Age
U.S. sales of EVs have been driven
in part by California’s air-quality
standards—and because nine other
states also have adopted those Zero
Emission Vehicle (ZEV) standards,
says Baker-Branstetter. Those sales are
driven by the interplay between state
incentives and national policy, Shepard
says: “If federal policy weakens
relative to the ZEV state policies, the
incentive for automakers to sell EVs
in non-ZEV states diminishes.” He
adds that the charging infrastructure
and consumer awareness of EVs are
particularly low in states that don’t
adhere to the standards.A Way to Save Money
One big draw for shoppers has been
tax credits, which can lower the overall
cost of buying an EV. These tax credits
are subtracted from the adjusted
gross income on the tax return buyers
prepare the following year, reducing
the total income on which they must
pay federal taxes.
Federal tax credits were introduced
in 2010 as a way to encourage interest
in EVs. These credits are based on the
vehicle’s size and battery capacity,
and max out at $7,500. The full credit
is available until a manufacturer has
sold 200,000 qualified EVs. After that,
the credits phase out—they drop to a
maximum of $3,750 for six months,
then to a max of $1,875 for six months,
before going away for good. All EVs
currently for sale, except for GM and
Tesla models, qualify for the full
tax credit. As of July 1, Tesla buyers
were able to claim only $1,875.
Tesla’s federal tax credit expires at
the end of this year. GM’s tax credit is
$3,750 until Oct. 1, when the amount
drops to $1,875, then goes away for
good in April.
Similarly, some state credits have
either been eliminated or are beginning
to phase out. Georgia repealed its
$5,000 EV tax credit in 2015, and EV
sales in the state plummeted. EV tax
credits in Colorado are scheduled toBUYERS who choose
an “electrified”
vehicle to “go
green” can find the
word has different
meanings. There are
different levels of
electrification, each
with its own pros
and cons.
Hybrids, such as
the Toyota Prius, use
a gasoline engine
that’s teamed with
an electric motor.
The battery pack
that supplies the
motor is charged
by the engine
and regenerative
brakes. This typically
results in strong
fuel economy.
“The car has verylimited all-electric
capability,” says
Gabe Shenhar,
associate director
of CR’s auto test
program. “But the
benefit is that
the car is always
ready to go, and the
owner doesn’t need
to bother with
plugging in or think
about when and
where to charge.”
A plug-in hybrid
is like a traditional
hybrid but with a
bigger battery. This
allows the vehicle
to drive solely on
electricity for longer
distances and at
higher speeds for 20
to 48 miles, without
using the gas engine.“Pure” EVs don’t
use a gas-powered
engine at all; just
plug them into a
wall outlet. The EVs
with the biggest
batteries can travel
more than 200 miles
before they need
to be recharged.
However, taking
really long trips in
an EV requires some
planning, because
electric charging
stations aren’t
nearly as common
as gas stations. And
charging at any
level requires a time
commitment.THREE LEVELS OF
ELECTRIFICATION
[ CONT. ON PAGE 59 ]56 CR.ORG SEPTEMBER 2019