Why Dealers in CARB States Are Facing an EV Reality Check (And How to Adapt Fast!)

New Orleans, flight delays, and the NADA energy boost ??

The Lectrium team recently returned from NADA in New Orleans. After multiple canceled flights, we finally made it (ask me about our "Bus-Pitch")! NADA felt different this year... The shift to EVs is happening. Some dealers are thriving in EV sales, others are figuring it out, and some are just hoping it all goes away (It most certainly will not). But here’s the truth: If you’re in a CARB state, EVs aren’t just an option—they’re your reality.

Most dealers who came to NADA this year were from the Southeast (since driving was the easiest option). For those dealers who could not attend NADA and want to prepare for a multi-energy future with electric, hybrid, and gas powertrains, please reach out especially if you are in a CARB state.

What Does It Mean to Be a CARB State? ??

CARB (California Air Resources Board) states follow stricter emissions regulations than federal standards. This means if you’re in California, New York, Massachusetts, or one of the 15 other CARB states, your dealership is facing mandates that prioritize zero-emission vehicles. Some OEMs—like BMW, Ford, Honda, Volkswagen, Stellantis and Volvo—have direct agreements with CARB, meaning they have EV commitments and promises whether federal policy changes or not.

California created CARB in 1967 in response to severe air pollution in cities like Los Angeles, which was experiencing some of the worst smog in the world. The federal government granted California the ability to set its own stricter emissions standards due to the state’s unique air quality challenges. Over time, other states opted to follow California’s lead, adopting CARB standards to push for cleaner transportation. CARB functions separately from federal regulations by setting its own vehicle emissions rules, which automakers must comply with if they want to sell cars in CARB states. This has made CARB one of the most influential regulatory bodies in shaping the future of vehicle emissions and EV adoption in the U.S.

This is why dealers in CARB states are feeling the pressure. Your state (or your OEM) is pushing EVs. But is your website, marketing, and sales process ready?

Here is the full list of CARB states: California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Nevada, Oregon, Pennsylvania (partially), Rhode Island, Vermont, Virginia, Washington.

If you are a CARB state dealer, get in touch through our website or message me directly.

Separately, if you are a dealer with high EV inventory % (VinFast, Hyundai, Kia, BMW, Chevrolet, GMC, Cadillac), message me.

Trump, States, and the Regulatory Maze ???

Here’s where it gets tricky: The Trump administration is attempting to roll back federal EV incentives, pause funding for EV infrastructure, and revoke California’s ability to set its own emissions rules. But OEMs already made their bets. Some are locked into CARB agreements that require aggressive EV sales. Others are hedging with hybrids and plug-in models. Either way, this isn’t just a political debate; it’s a massive business decision for manufacturers and dealerships alike.

If your state or OEM has committed to EVs, your dealership should prepare. If they’re taking a plug-in hybrid-first approach, you still need a game plan. Either way, the dealerships that adapt now will win across fuel types.

The Future Is Multi-Energy ?????

One thing is clear: The near term future isn’t just BEVs. It’s BEV, hybrid, PHEV, and gas vehicles coexisting. A full shift to EVs won’t happen overnight, and customers still demand choice. But the dealers who lean into this shift—rather than fight it—will capture market share.

Your customers are asking:

• Which powertrain is right for me?
• How far can this EV drive from my house?
• How much will I actually save on fuel and maintenance with an EV or PHEV?
• What tax credits are still available both federally and in my state?

If your website doesn’t answer those questions, they’ll go somewhere else. Tesla doesn’t make them guess. Neither should you. One extremely simple fix is changing the dealership navigation bar to highlight EV inventory to in-market-EV-intenders.

Another simple improvement is to partner with us at Lectrium to showcase Range, Charging, and Affordability on your EVDPs.

The OEM Allocation and Compliance Game ????

Dealers across CARB states are facing a new challenge: OEM allocation and compliance requirements. Many manufacturers are sending more EVs than dealers believe they can sell, simply because they need to meet CARB-driven quotas. Or, OEMs are telling dealers they must sell a certain % of electric vs gas to receive popular inventory allocations. This means dealerships are forced to carry EV inventory that moves much slower than ICE vehicles, impacting floor plan costs and cash flow.

But it does not have to move slower. If dealerships were properly positioned to market and sell EVs, days supply would mirror ICE vehicle performance. People are buying more & more EVs. Tesla recently achieved a global days supply of just 12 days.

In a traditional gas-powered market, inventory turn speed is everything. ICE vehicles at dealerships typically move within 30-45 days. EVs, however, are often sitting for 100+ days, leading to higher carrying costs and lower gross profit per electric unit especially on the front end. This makes it critical for dealers to build a sustainable and profitable EV business unit.

The dealers who are succeeding aren’t just taking what the OEMs send them, they’re actively marketing, educating, and positioning their EVs better than their competition. They are also developing strategies to improve EV profitability, including better customer education, service packages, and leveraging incentives to close deals faster. If your lot is filling up with slow-moving EVs, it’s time to rethink your strategy.

Electrify Your Website. Electrify Your Sales. ??

The auto industry was built to sell gas cars. Your inventory feed, your website, and your CRM were all designed for an ICE-first world. That needs to change if you want to succeed in EV sales.

I am building Lectrium together with an awesome team to help dealerships Sell. More. EVs.

When evaluating a vendor in the Automotive industry it is common to ask: DISC (Does it sell cars). It is time for dealers to also ask DISEV (Does it sell Electric Vehicles).

Let’s electrify your dealership's web properties. Book a demo with me and my team today to stay ahead. ?? Schedule a Demo