Why is Hawaii becoming a leader in electric vehicle adoption in the U.S.?

U.S. consumers are switching to all-electric vehicles slower than many expected, but a growing leader in electric vehicle adoption is Hawaii.

The tropical island state ranks fifth in overall electric vehicle adoption this 12 months, with 11.9% of recent retail vehicles sold through February, in accordance with J.D. Power.

Hawaii also ranks third – behind California (46.1) and Washington (37) – in the JD Power “EV Adoption Score”, weighted by, amongst others, based on market, consumer preferences and electric vehicle availability, with a rating of 33.8.

“We measure adoption based on availability, which means buyers need the availability of electric vehicles that meet their needs … before they can even consider adoption,” said Elizabeth Krear, vice chairman of the electric vehicle practice at J.D. Power. “In California, the number of electric vehicles is much higher than in Hawaii. But when consumers have a viable option, 33% choose to purchase an electric vehicle.”

Hawaii is also the state with the most electric vehicles and disagreed with the California Air Resources Board’s decision Zero emission vehicle program– says JD Power. These rules promote electric vehicles and include stricter vehicle emissions and miles per gallon standards for traditional vehicles in places which have adopted the measure, including the remaining five largest states: California, Washington, Oregon and Colorado.

What is happening in Hawaii that is causing more consumers to decide on electric vehicles? According to Ivan Drury, it is a mix of things, but primarily high fuel costs, the availability of renewable energy for charging and private culture. director of insights at automotive research firm Edmunds, who lives in Waikiki on the Hawaiian island of Oahu.

“Compared to most mainland states, there is a greater sense of responsibility for land management. “If you look at the word ‘Aina’ in Hawaiian, you’ll see what I mean: lots of pride in the land,” he said.

Drury also said the popularity of hybrid models in the state (19% in 2023) has helped drive the shift to electric vehicles, and travel concerns — which are a hurdle for some U.S. buyers — aren’t really an issue in Hawaii.

“We are on an island. Nobody really worries about traveling unless they live on the Big Island,” he said. (For comparison, the “Hawaiian Belt” around the Big Island, or Hawaii Island, is only about 260 miles long.)

Gasoline prices also play a role, as they do in other states resembling California. The average price for a gallon of gas in Hawaii is roughly $4.72, in accordance with AAA. That’s the highest in the U.S. outside California and $1.10 higher than the national average of $3.62 per gallon.

J.D. Power reports that the best-selling electric vehicles in the state are: Tesla Model Y, Tesla Model 3 and Ferry Lightning F-150.

“I’m really happy. I like this car. I don’t like buying gas,” said Scott Sageman, a 2021 Tesla Model 3 owner who has lived on the Big Island of Hawaii since moving from California in 2020.

Russell Wong, regional vice chairman of seven Aloha Kia stores in Hawaii, said customer interest in electric vehicles continues to grow, but the vehicles still only account for about 2% of store sales.

“While this is a significant percentage of our current sales compared to other dealers or other markets, it is still a very, very small percentage,” he said. “We see it continuing to grow.”

Wong said there was strong interest in the recent Kia EV9 SUV, which is now arriving in dealerships. Currently, the best-selling electric vehicle at Kia dealers is the Niro, which is also Kia’s least expensive all-electric vehicle, with the Aloha Kia starting at around $36,000.

Although Hawaii favors electric vehicles to a greater extent than another states, it still faces lots of the same electric vehicle adoption issues as the continental United States, including a lack of charging infrastructure, affordability, and few vehicle decisions.

AND Questionnaire a survey released Monday found that lower than half of U.S. adults (44%) say they’re “seriously considering or may consider” purchasing an electric vehicle, down from 55% in 2023. The percentage of people that don’t intend to purchase an electric vehicle, increased from 41% to 48%.

Sageman, who lives on the side of a volcano, said he hasn’t had problems charging as he would at home, but the estimated range of his Model 3 could also be lower than expected resulting from the state’s hilly terrain.

“The only thing I’ve noticed is that there’s not a lot of attention paid to the estimated range,” he said. “You won’t get the same amount if you do a lot of uphill riding.”

Average cost to a consumer purchasing an electric vehicle from a franchised dealer (excluding Tesla, Rivian and other most direct-to-consumer brands) in Hawaii this 12 months exceeded $62,600, in accordance with Edmunds. That’s down from greater than $68,500 last 12 months and about $12,700 in comparison with the average vehicle price in Hawaii.

High prices are a nationwide and Hawaiian trend. Nationwide, higher-income Americans are the subgroup more than likely to own an electric vehicle, at 14%, up from 6% last 12 months, in accordance with Gallup’s report.

“We are kind of at the end of adoption,” Drury said. “For those that can use an electric vehicle, it is effective and sold. For those that don’t, it won’t be for a very very long time. Overcoming the obstacles of infrastructure and high maintenance costs is not something that may be tackled overnight and even inside a few years.