Trenton, N.J. (January 13, 2020) – The New Jersey Coalition of Automotive Retailers (NJ CAR), the statewide trade association that represents New Jersey’s $38 Billion per year auto retail industry, today, applauded final legislative action on A4819/ S2252 and urged Governor Murphy to sign the bill, which will boost the electric vehicle (EV) market in the Garden State.
Fifteen years ago, the State of New Jersey opted in to the California Low Emissions Vehicle (CaLEV) program, which obligates automakers to sell an ever-increasing percentage of low and zero emission vehicles (ZEVs) in every CaLEV state, including New Jersey. Since that time, manufacturers have invested 10’s of billions of dollars in ZEV technology and now offer dozens of battery electric models, with dozens more coming to market soon.
“While other CaLEV states have offered attractive incentives and applied other strategies to promote EV sales, New Jersey has done virtually nothing to move the EV market, until now,” says Jim Appleton, President of NJ CAR, the industry trade group that represents New Jersey’s 510 neighborhood new car dealerships. “The passage of A4819/ S2252 represents a long-overdue commitment on the part of State government to put real money where its mandates are.”
The legislation addresses the two biggest obstacles to greater EV adoption: price and range anxiety. The typical EV costs $12,000 – $15,000 more than a comparable gas-powered vehicle. The sales tax exemption in New Jersey for EVs and generous federal tax breaks available to most consumers improve the price gap, but don’t bridge it entirely. As a result, consumers aren’t buying EVs in anywhere near the numbers mandated under state law. The cash-on-the-hood incentive of up to $5,000 per vehicle provided by A4819/ S2252 will make many moderately-priced EVS on the market, competitive with comparable gas-powered models.
The legislation also addresses range anxiety by setting goals to build out a targeted, publicly-available charging infrastructure that will ultimately be needed to support a growing EV marketplace in New Jersey.
“Now that State government has begun to address the obstacles to greater EV adoption, manufacturers will see opportunity to grow the EV market in New Jersey,” says Jim Appleton. “And New Jersey’s 500+ franchised new car and truck dealerships are ready, willing and able to lead the EV revolution and help the State reach its clean air goals that benefit everyone.”