Ford Pro observed a significant uptick in EV adoption among state and local government fleets. According to U.S. Department of Transportation (DOT) data, over four million vehicles are operated by state and local governments in the U.S. Mirroring the federal government's directive for zero-emission light-duty vehicles by 2027 and all vehicles by 2035, local governments are not just participants but are leading the charge in the electrification movement.

Areas of Growth with the Ford Pro Market

Ford Pro has seen an increase in demand for its E-Transit van, which saw sales up by 148% over Q1 last year. Registration data shows that 25% of E-Transit sales are going to state and local government customers. 

Ford Pro saw a 120% increase in unique E-Transit customers in 2023. Year to date, eight of the top 20 E-Transit Fleet Customers are state and local governments while 14 of the top 20 Lightning Fleet Customers are state and local governments. 

Ford Pro estimates that over the next five years there will be a 49% reduction in scheduled maintenance for the F-150 Lightning and a 48% reduction in scheduled maintenance costs for the E-Transit. 

"At the end of the day, we are all here work to lower the total cost of ownership and improve uptime [for our customers]," said Greg Wood, Ford Pro commercial & government sales general manager, during an OEM Panel Discussion at NAFA's 2024 Institute and Expo. The panel was moderated by Chris Brown, associate publisher of Automotive Fleet, and included reps from Ford Pro, GM Envolve, Stellantis, and Toyota.

"Back in the early 70s when seatbelts were made, nobody wore seatbelts. Now, nobody thinks about that. If we're all sitting here 10 years from now, would we be having the same level of conversation about electrification?" Wood added. "There are so many benefits, but there's a lot of work that has to be done collectively within the industry to get us to the point of seeing the strong benefits."

Incentives for Future Electric Vehicle Demand

Ford Pro pointed to a match of good use cases for electric vehicles plus a low cost to purchase and operate EVs (48-49% lower maintenance costs, according to Ford Pro) as key drivers for EV adoption among municipal agencies.

More EV growth may be seen down the road due to a recent change to the Inflation Reduction Act that extends the Commercial Clean Vehicle Tax Credit’s (45W) essential benefits to tax-exempt organizations in the form of direct cash payments, including state and local governments, universities, and non-profits, lowering the acquisition costs of EVs for the public sector. 

Key Incentives Now Available:

• Direct Cash Incentives: Tax-Exempt organizations can now claim up to $7,500 per EV, directly tackling budget constraints.

• Tax Credit for Charging Infrastructure: Up to 30% (max $100,000) to support the setup of essential EV charging stations.

As of early 2024, in order to qualify for the 30C EV charging tax credit, individuals and businesses must be located in an “eligible census tract.” That is defined as “any population census tract that qualifies as a low-income community, or that is not an urban area.”