Sorry, Washington.
It looks like a wave of dirt-cheap leases on affordable plug-in cars has pushed Colorado into second place for EV adoption nationwide.
A new report from Colorado Automobile Dealers Association finds more than 23 percent of new cars registered in the state from January through September were either battery-electric or plug-in hybrid models, putting Colorado second only to California nationwide in EV market share. Washington and Oregon follow in third and fourth place.
It also appears EV adoption has accelerated in the last few months. Plug-in vehicles accounted for nearly 28 percent of new cars on Colorado roads in the third quarter of 2024, a 5.7 percent increase over the previous quarter, according to the report.
One factor driving the surge is eye-popping lease deals on already affordable EVs. Tynan’s Nissan Aurora, for example, offers an entry-level Nissan Leaf for only $29 per month once a Colorado resident pays roughly $2,400 in sales taxes and dealer fees. The same dealership offered a $19 per month lease special earlier this summer.
The sales strategy is one reason Colorado drivers are likely noticing more Nissan emblems out on the road. Between January and September, more than 5,600 Nissan Leafs and Nissan Ariyas were registered in the state, marking a 542 percent increase in registrations for those models during the same period in 2023.
Nissan also now sits as the second-most popular brand for battery-powered vehicles, and the Nissan Leaf ranks as the second most popular EV model behind the Tesla Model Y.
Matt Groves, the president of the Colorado Automobile Dealers Association, said those deals are the direct result of Colorado’s generous EV incentives, which allow residents to stack rebates and discounts to cut the cost of a new plug-in car.
Colorado’s main tax credit is good for $5,000 off any plug-in EV and an extra $2,500 if a model’s recommended sales price is less than $35,000. Dealers can throw in an extra $600 if they take care of all the paperwork rather than leaving it to the buyer. That means a low-cost electric car like the Nissan Leaf S is eligible for $8,100 in discounts.
“For people who are on a budget and need to find an affordable way to get around, we are making battery electric affordable,” Groves said.
Other brands like Kia and Hyundai have experienced similar jumps in EV registrations. While Tesla continues to rank as the most popular EV brand in Colorado, total registrations for the brand dropped slightly in the first three quarters of 2024 compared to the same period a year earlier.
Colorado, however, only holds the second-place spot for overall EV adoption if the ranking includes plug-in hybrids. Those vehicles usually contain a small battery capable of powering a car for a few dozen miles, but a traditional gasoline-powered engine is ready to take over on longer expeditions.
From January through September, plug-in hybrids accounted for 5.7 percent of new registrations in Colorado, marking the highest market share of any state.
“Our plug-hybrid electric vehicles have even surpassed California this year, which has safely put us into the number two spot,” Groves said.
