How many people have electric vehicles in NJ? Not enough, some say

⚫ Compared to 2022, EV registrations in New Jersey have doubled

⚫ Gov. Murphy wants all new car sales to be electric by 2035

⚫ There are fears that diminished incentives could result in less demand

New Jersey is celebrating what it calls a milestone related to the Murphy Administration's efforts to get more electric vehicles on the road.

But folks in the automobile industry say this is nothing to celebrate — New Jersey is way behind where it needs to be right now, and the state is just making it harder for people to go green on the road.

According to Gov. Phil Murphy's office, New Jersey has surpassed 200,000 electric vehicle registrations: nearly 208,000 battery-electric and plug-in hybrids, as of the end of September.

That figure was at around 91,000 at the end of 2022.

“Reaching this 200,000 EV milepost clearly demonstrates growing consumer confidence in the performance of electric vehicles and our growing regional network of charging infrastructure,” Murphy said. “The steps we take today to lower emissions will improve air quality and mitigate climate impacts for generations to come, all while increasing access to cleaner car choices.”

Murphy's office attributes the spike to increased consumer demand, expansion of charging infrastructure, strong polices, and vehicle availability and choice.

SEE ALSO: Pedestrian deaths skyrocket in New Jersey

Currently, manufacturers are offering 57 EV models to consumers in the Garden State, according to Murphy's office.

Murphy envisions a complete phase-out of new gas-powered vehicle sales come 2035. Under current plans, at least 51% of all new car sales in New Jersey must be electric vehicles by 2027. These are plans that can be overruled by legislators or undone by future governors.

Shift in demand?

The milepost news comes as industry observers fear a big shift in momentum toward EV sales, mainly because incentives are dwindling.

A sales tax exemption on zero emission vehicles in New Jersey went away on Oct. 1

Through June 2025, EV buyers are paying a sales tax rate of 3.3125%, according to the New Jersey Department of the Treasury. The rate will then jump to a full 6.625% on July 1, 2025. On that date, a $40,000 purchase, for example, would actually cost a buyer $42,650.

SEE ALSO: These are NJ's wealthiest ZIP codes

On July 1 of this year, electric vehicle owners began paying a significantly higher registration fee on a yearly basis as part of the state's plan to make sure that EV drivers are paying their fair share into the Transportation Trust Fund. The additional expense is $250 in 2024, and it increases by $10 each year through 2028.

For new buyers, all of those yearly fees are added to the upfront cost of a vehicle.

And the "Charge Up" incentive from New Jersey has dwindled over time. Originally, Garden State officials were offering buyers a rebate of up to $5,000. In the latest round, the base incentive is $2,000, and another $2,000 is available for buyers under certain income thresholds.

"Dealers want to sell what consumers want to buy, but they simply don’t want to buy EVs at the numbers mandated by New Jersey," said Laura Perrotta, president of the New Jersey Coalition of Automotive Retailers.

Perrotta said reaching 200,000 registrations is a "positive step," but the state still has a long way to achieve its ambitious goals, noting that the state is failing to recognize "marketplace realities."

"New Jersey’s EV market is governed by the California Air Resources Board’s Advanced Clean Car II Rule, which required New Jersey new car dealers to sell more than 100,000 EVs last year. Consumers bought less than half that amount," she said. "The CARB mandates require EVs account for 23% of ALL vehicle sales this year. Through the third quarter of 2024, EVs accounted for 11.2% of all sales, less than half of the mandate."

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