Study: 90% of Households Would Save on Energy Costs Switching To EVs

By Scott McClallen The Center Square

A study from the University of Michigan says more than 90% of vehicle-owning households in the U.S. would reduce the percentage of income spent on transportation energy if they switched to electric vehicles.

However, more than half of the lowest-income U.S. households, or about 8.3 million households, would continue to experience high transportation energy burdens, defined as spending more than 4% of household income on filling the tank or charging up.

Study author Joshua Newell from the university’s Center for Sustainable Systems said the results confirm the potential benefits of widespread EV adoption. He called for “policy interventions” to increase EV accessibility for people with low incomes.

“However, EV ownership in the U.S. has thus far been dominated by households with higher incomes and education levels, leaving the most vulnerable populations behind,” Newell said in a statement.

In 2016, 78% of federal EV tax credits flowed to taxpayers with incomes over $100,000.

In other words, the study says the government needs to subsidize EVs even more. Michigan taxpayers have helped subsidize EVs by $2 billion.

Jason Hayes, director of environmental policy at the Mackinac Center for Public Policy, said the study only accounts for the amount spent on gasoline or charging—not the initial purchase price of the vehicle, which is one of the most significant barriers to EV adoption.

“They can spend less money on transportation energy, but their overall transportation budget would go up,” Hayes said in a phone interview. “So it’s equivocation: you’re playing with words there.”

According to Kelley Blue Book, the average price of an electric car in September 2022 was $65,291. Meanwhile, the average price for a gas-powered vehicle was $48,100. Moreover, many used gas-powered cars cost between $5,000 and

$15,000.

The study says more than 90% of households that replace gaspowered vehicles with EVs would reduce the generation of climatewarming greenhouse gases.

The new study was published online Jan. 11 in Environmental Research Letters, an IOP Publishing journal. It considers the spatial variation of EV energy costs and greenhouse gas emissions nationwide.

EVs currently account for about 1% of the vehicles on American roads. If EVs replaced all vehicles on the road, the transportation energy burdens and associated greenhouse gas emissions would vary widely.

Some households could reduce their annual transportation-energy costs by $600 or more and cut their annual carbon footprint by more than 4.1 metric tons of carbon dioxide equivalents, by buying a new EV.

Very high EV transportation energy burdens, ranging from 10% to 64%, would persist for the lowestincome households and would be concentrated in the Midwest and the two states with the highest electricity prices: Hawaii and Alaska.

Hyundai Sets Massive 2023 Sales Growth Target Propelled by New EV Offerings

By William Johnson Teslarati

Hyundai announced it aims to grow auto sales by 10% this year alone.

Over the past two decades, Hyundai Motor Group has become a sizable competitor in the automotive industry. It is now a leader in affordable offerings and electric vehicles, along with the likes of Ford. Following this success, the Korean automotive group has set the ambitious goal of growing its vehicle sales by 10% in 2023.

According to Reuters, Hyundai Motor Group is already a massive seller of vehicles globally, selling 6.85 million in 2022. And while this achievement was off from its 2022 sales goal of 7.16 million vehicle sales, it was still a significant growth year despite numerous poor macroeconomic conditions.

A growth of 10% in sales would equate to roughly 7.54 million vehicles sold in 2023, an increase of 685,000 vehicles compared to 2022.

Hyundai has good reason to be optimistic. While Tesla continues to dominate the EV market in the U.S. and numerous other markets globally, Hyundai Motor Group— which includes Hyundai, Kia and Genesis—has rapidly expanded EV offerings over the past three years and is now a leader in more affordable models. And with new models planned to be coming in the new year, it is poised to continue to find success.

In a statement to Reuters, a corporate spokesperson said, “Hyundai plans to expand market share and operate profitabilityoriented businesses by flexibly responding to market changes, accelerating its transition to electrification, responding to global environmental regulations and optimizing production, logistics and sales by region.”

Hyundai’s ambitious goal faces a couple of hurdles. Foremost, without EV manufacturing operations in the U.S., none of the company’s EVs are currently eligible for federal EV tax incentives, a significant discount for many buyers. www.autobodynews.com

Secondly, while Hyundai has performed admirably in the past year, tackling supply chain issues, due to the current COVID spike in China, many expect disruptions to continue.

Finally, while the EV market in the U.S. remains fairly sparse, European and Asian markets have become far more competitive over the past year, which could hinder the ambitious company’s growth. With EVs coming into the mainstream in most major markets, Hyundai Motor Group is in a fantastic position to seize the opportunity, and its ambitious goal is an excellent sign of optimism in a highly uncertain time.

Contributing factors to low EV savings include cold winter temperatures that hurt battery performance, electrical grids that rely largely on fossil fuels, or high electricity prices relative to gasoline prices.

The study evaluated three factors associated with the EV transition: transportation energy burden, fuel costs and greenhouse gas emissions. The researchers calculated transportation energy burdens and lifetime greenhouse gas emissions of new EVs and internal-combustion vehicles at the census tract level. Then they compared the energy burdens of the new vehicles to the energy burdens of the current on-road vehicle stock. Finally, they compared the spatial variation and extent of energy burdens and greenhouse gas emissions for EVs and internal-combustion vehicles nationwide.

Transportation accounts for the largest portion of the greenhouse gases emitted in the U.S., with direct emissions from passenger vehicles and light-duty trucks comprising roughly 16% of U.S. emissions.

Michael C. Buzzard, 20-year veteran of the automotive aftermarket industry, brings his wide range of executive leadership experience to the University of the Aftermarket Foundation (UAF) Scholarship Committee as its new chair. He will lead the nonprofit program that has awarded millions of dollars in scholarships to students enrolled in four- and two-year colleges as well as ASE/NATEF certified automotive, collision and heavy duty postsecondary schools.

Currently a partner with Schwartz Advisors, Buzzard has held leadership roles in marketing, sales management, corporate development and general management during his time with Auto Plus Auto Parts. Prior to his career at Auto Plus, he was an internal consulting services analyst at JP Morgan.

The deadline to apply for scholarships for the 20232024 academic year is March 31. To learn more, visit www. AutomotiveScholarships.com.