California is known as one of the largest automobile markets in the United States. They also have some of the strictest government environment regulations which has made them one of the leading markets for hybrid vehicles. Because of this, the Center for Automotive Research (CAR) in Ann Arbor feel that the demand for plug-in and electric cars will follow a similar pattern.

California was the first state were the Chevy Volt, Nissan leaf and the Ford Focus Electric was released, and where fuel cell vehicles are leased in small numbers. According to the CAR report the demand for cleaner technologies is fed by incentives such as tax credits, priority parking spaces for environmentally friendly vehicles, and because California has invested into infrastructure to accommodate the electric vehicle.