New Jersey Urged to Reevaluate EV Sales Targets Amidst Industry Challenges

Apr 25, 2025 at 4:19 PM

Business leaders in New Jersey are advocating for a reassessment of the state's ambitious electric vehicle (EV) sales targets. The New Jersey Business & Industry Association (NJBIA) has called upon Governor Murphy’s administration to follow Maryland's lead and delay imposing penalties on automakers and dealerships struggling to meet unrealistic EV quotas set to begin with the 2027 model year. This push comes amid concerns over consumer affordability, business costs, and the feasibility of achieving these goals within the given timeframe.

In an editorial published recently, NJBIA Deputy Chief Government Affairs Officer Ray Cantor highlighted the challenges posed by the Advanced Clean Cars II rule (ACC II), which mandates that 43% of all new cars sold in New Jersey must be zero-emission vehicles by fall 2026. Despite improvements, current figures show that EVs accounted for only 14% of total car sales in 2024, significantly short of the required benchmark. The ultimate aim of ACC II is to ensure all new car sales are zero-emission vehicles by 2035.

Cantor emphasized the need for practical adjustments, stating that while the administration's environmental objectives are commendable, the initial milestones remain unattainable. He pointed out that such stringent requirements could impose substantial financial burdens on both consumers and businesses during an already challenging economic period. To mitigate these pressures, Cantor suggested adopting Maryland's approach, where penalties for the 2027 and 2028 model years have been suspended. Such a move would provide relief to automakers who have heavily invested in EV infrastructure and technology.

This temporary reprieve could also discourage New Jersey residents from purchasing vehicles in neighboring states not bound by ACC II regulations. By aligning with Maryland's strategy, New Jersey could foster a more supportive environment for the automotive industry while continuing its transition towards sustainable transportation solutions.

By pausing enforcement of these penalties, New Jersey can offer much-needed stability to automakers and dealerships navigating the complexities of transitioning to EV production. This strategic adjustment will not only address immediate economic concerns but also enhance long-term compliance with environmentally friendly practices. As the state continues its journey toward cleaner energy alternatives, collaboration between policymakers and industry stakeholders will prove essential in crafting realistic and effective policies.