Checking the Pulse of NJ’s Electric Vehicle Market

Growth in NJ’s EV sector has surged, but new policies could short-circuit progress towards the state’s lofty goals.

By Jim Pytell, Managing Editor On Jul 9, 2025

Over the past several years, New Jersey has made a concerted effort to promote the purchase of more electric vehicles (EVs) in the state. The Murphy administration, whose cited reasoning behind the EV push includes environmental, economic, and public health factors, implemented a slew of incentive programs aimed at increasing EV adoption, which has contributed to significant growth in the sector.

In fact, in 2023, the number of plug-in electric vehicle registrations in New Jersey grew to 154,153, an increase from 91,727 EVs on the road at the close of 2022, according to New Jersey Department of Environmental Protection (DEP) data. 

Then, in late 2024, New Jersey surpassed 200,000 EV registrations, giving the state a 14.4% share of the US EV market, which is well above the national average of 10.2%, according to state data.

Gov. Phil Murphy has said his goal for New Jersey is to have 330,000 registered EVs by the end of 2025, adding that state policies “are giving consumers and businesses the confidence to make the EV switch.”

New Jersey’s pro-EV incentives include: the Charge Up New Jersey program, which offers rebates for eligible EV purchases or leases; the NJ Zero-Emission Incentive Program (NJZIP), which provides vouchers for zero-emission medium and heavy-duty vehicles; and the Clean Fleet EV Program, which supports local, state, and non-profit entities in purchasing EVs and charging stations.

Since 2019, more than $600 million has been allocated to these initiatives.

However, recent developments at the federal level as well as a pullback of some state incentives have raised questions about continued momentum towards future EV adoption.

A Less Friendly EV Environment

In May, the US Senate voted to repeal an Environmental Protection Agency (EPA) waiver that allowed California to ban the selling of new gas-powered passenger vehicles by 2035.

For New Jersey, which is one of 12 states adopting the Advanced Clean Cars II (ACCII) rule, the repeal would mean there is no ban on gas-powered cars by 2035 in the state – striking a blow to the state’s goal of making 100% of new car sales zero-emission vehicles by 2035.

NJBIA Deputy Chief Government Affairs Officer Ray Cantor explains that with the California waiver overturned, all states will presumably need to conform to the EPA standard.

“We are confident that the EPA will work with industry on a workable rule that will allow for the natural growth of the EV market and hopefully allow for other lower carbon options to be deployed,” Cantor says. “New Jersey can also continue to incentivize the purchase of EVs and charging stations.” 

Also in May, the Trump administration halted a program that was set to distribute $5 billion to states to install electric vehicle charging stations under the National Electric Vehicle Infrastructure (NEVI) program. The move prompted a lawsuit from 17 states, including New Jersey, arguing that the federal government lacks the authority to withhold congressionally approved funds. Of the $5 billion allocated for the program, $104 million is dedicated to New Jersey, which was slated to get the money over a five-year period, according to the state Department of Transportation.

But it is not just the federal government that is pulling back EV initiatives. On the state level, New Jersey has phased out its sales tax exemption for EVs, and starting this month (July 1), EV buyers must pay a 6.625% sales tax on EV purchases.

Additionally, starting last year, EV owners in New Jersey face a $250 annual fee, which will increase by $10 each year through 2028.

Continued Investments

Still, Laura Perrotta, president of New Jersey Coalition of Automotive Retailers (NJCAR) tells New Jersey Business Magazine that New Jersey auto and truck dealers have been making major investments to handle growing EV demand.

“Many of our dealers have invested in chargers and power upgrades at their dealerships and are training their sales force and their technicians to sell and service electric vehicles,” Perrotta says. “The dealer plays a very important role in educating consumers about EV ownership.”

Separately, PSE&G is significantly investing in the state’s EV infrastructure through its Electric Vehicle Charging Program, expanding charging infrastructure and offering financial incentives. 

PSE&G was the first New Jersey utility to support the creation of the state’s EV charging infrastructure through a $166 million investment dedicated to installing 45,000 EV chargers throughout its service territory for residential, commercial and direct current fast charge (DCFC) EV charging.

Its EV program also includes residential charging rebates, and credits of up to $30,000 for the installation of commercial, ENERGY STAR® certified, Level 2 smart chargers, and up to $100,000 for the installation of public DCFC stations.

Affordability

Perrotta adds that the biggest challenge consumers have with purchasing an EV is affordability. 

“That is why federal and state incentives are so important,” Perrotta says. “Everything always ultimately comes down to pocketbook issues. If the federal [and state] incentives go away, it will truly set back future progress toward furthering EV penetration in New Jersey and across the country. Only through a combination of federal and state incentives can we continue to gain new EV buyers.” 

However, she adds that even with incentives, reaching the state’s lofty EV-related goals such as making 100% of new car sales zero-emission vehicles by 2035, and zero-emission vehicles comprising 43% of new car sales in model year 2027, are unrealistic, describing such mandates as a case of going “too far, too fast.”

“In 2024, EV sales accounted for 14% of total car sales in New Jersey,” Cantor notes. “That’s an improving number, to be sure, but well off from where the rule requires us to be. 

“We can appreciate the Murphy administration’s efforts to reduce emissions and transition to more sustainable transportation options, but the fact of the matter is the first milestone of this mandate is not in any way achievable, and it will significantly add costs for both consumers and businesses during a severe affordability crisis,” Cantor concludes. “We can, and should, make our transition to cleaner transportation without unworkable mandates.”

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