San Francisco has emerged as a leading figure in electric vehicle (EV) adoption in the United States, achieving a record-breaking 50% penetration rate of electric and hybrid vehicles in all new retail vehicle registrations in March and April this year, according to data from S&P Global Mobility. This landmark achievement makes it the first significant U.S. metropolitan region to reach such a level of EV adoption.
In contrast, electric and hybrid vehicles accounted for just 16.6% of total registrations across the United States in March 2023. However, in the San Francisco area, battery electric vehicles claimed a significant 34.2% of the market share, with hybrid and plug-in hybrid vehicles contributing an additional 15.8%. This trend continued into April with electrified vehicles capturing a record 53.1% of the market.
A unique blend of demographics and economics in the region has played a key role in this surge. San Francisco’s new-vehicle buyers are generally younger and wealthier compared to those in other major U.S. metropolitan areas. Individuals under 45 with household incomes above $75,000 constitute the highest national consumer group for EVs. Additionally, Asian consumers, who comprise a large segment of San Francisco’s population, are also more inclined to buy EVs.
“Wealth in the area also plays a big role in EV penetration. The highest penetration rates for EVs in the area are not in San Francisco’s city limits, but in wealthy suburbs such as Los Altos, Saratoga, Piedmont, and Orinda,” said Thomas Libby, a manager with S&P Global Mobility specializing in U.S. new and used vehicle industries, reports Auto News.
However, San Francisco isn’t an anomaly. Other metropolitan areas such as San Diego, Seattle, Sacramento, and Los Angeles are close rivals in EV market share, largely thanks to the presence of Tesla and the West Coast’s rapid adoption of trends and technology. Libby predicts the rest of the country will follow suit as more automakers transform their businesses to focus on EVs.