COVID-19 caused economic stress among the zero-emission vehicle (ZEV) industry; however, while the Clean Vehicle Rebate Project (CVRP) applicants were reduced during the height of COVID-19 and sales slowed, as time went on, CVRP applications recovered, revealing resilience within CVRP and the industry. Several analyses were conducted throughout the pandemic period, defined as March 1, 2020, to June 15, 2021. Applicant and survey data of the CVRP were analyzed for behaviors among the general population, the low-to-moderate (LMI) population and priority populations. A survey of Californians was conducted to understand purchasing and travel preferences during the pandemic. A summary of each analysis is as follows.

• Understanding the Resiliency and Trends of the EV Market During COVID-19: This literature review explores consumer behaviors and sentiments throughout the pandemic. While Europe and China implemented EV policies that aided the industry during the pandemic, the US did not. Though the US industry suffered during the height of the pandemic, sales largely recovered in 2021.
• CVRP Market Segmentation Before and During COVID-19: This analysis identified CVRP behaviors before and during COVID-19 and found that among CVRP applicants, purchases as opposed to leases increased in popularity. During COVID-19, while the number of applicants fluctuated, the average price of the vehicle rebated remained between $44,000 and $45,000.
• ZEV versus Non-ZEV Primary Driver Population Differences: The analysis revealed that although COVID-19 reduced both ZEV and non-ZEV drivers’ preference to acquire a vehicle, reduced long-distance travel and commute to work, it also showed that non-ZEV drivers are more likely to consider an EV since lockdown.
• CVRP Lease Behavior During COVID-19: Year-over-year comparisons show that CVRP participants increased their utilization of leases slightly since COVID-19, especially among the Increased Rebate population. LMI demographics that increased leasing were ages 16-20, 60-69 and 70-79 as well as Middle Eastern or North African and White or Caucasian individuals.
• CVRP Priority Population Participation During COVID-19: Applications among priority populations^[1] initially decreased during the onset of COVID-19, but year-over-year comparisons showed that applications ultimately increased during the COVID-19 period. The negative economic impacts to the groups examined in this report may be offset by programmatic policies focused on increasing their participation.
• CVRP Composition Summary: Changes during COVID-19: This analysis found a 43% decrease in total CVRP applications during COVID-19. However, most demographics saw little or no change in their share of applications, suggesting that while the total volume of applications decreased, there was no significant change in who was buying EVs.
• CVRP LMI Composition Summary: Changes during COVID-19: Similar findings of CVRP composition were found when focusing on LMI populations. We found that there was a 33% decrease in the total LMI CVRP applications during COVID-19, but decreases were not associated with any specific demographic.
• COVID-19 Survey: Survey participants reported that COVID-19 reduced their travel in general, commuting to work and air travel. Approximately 29% of participants also reported that COVID-19 affected their vehicle purchases. Of this group, about two thirds delayed their purchase. This contributed to the decrease in sales in 2020 as well as pent up demand and the early 2021 sales surge.

Common among these analyses are findings that show an initial impact to trends at the onset of COVID-19 followed by a recovery or increase in participation in around Q1 2021. CVRP participation demonstrated resilience during this time, likely due to policy consistency and consumer choice as well as consumer demand. For example, consumers maintained the need to use rebates in order to purchase or lease ZEVs and increased their interest in using personal vehicles above other forms of transportation. Interest in leasing also helped, indicating that consumer choice within policies is ideal for maintaining resilience. Lessons can be learned for future economic uncertainty: maintain consistency, offer choice, and make sure the needs of customers are being met.

¹ Priority populations are defined by California Climate Investments (CCI) as those that are economically disadvantaged, exposed to multiple sources of pollution or are especially vulnerable to the effects of pollution and a changing climate.