Columbia, South Carolina.A plan proposed by a bipartisan coalition of South Carolina lawmakers may allow customers to buy electric vehicles (EVs) straight from producers such as Rivian, Tesla, and Scout Motors, eschewing conventional dealership networks. Scout Motors intends to build a $2 billion EV manufacturing facility in Blythewood, South Carolina, with production starting in 2027. This legislative action coincides with that plan.
Currently, direct-to-consumer sales strategies used by businesses like Tesla and Rivian are prohibited by South Carolina law, which requires that vehicle sales take place through franchised dealerships. Volkswagen subsidiary Scout Motors plans to use a similar direct sales strategy for its next generation of SUVs and electric vehicles. Residents of South Carolina would not be able to directly purchase even state-made automobiles without a change in the law.
The proposed bill aims to change current legislation to permit automakers to sell cars directly to customers without first obtaining a franchise arrangement. Advocates contend that this shift would increase market competition and provide consumers more options. Dealership associations, however, are opposed to the idea because they fear it will undermine the established dealership paradigm.
If passed, the bill would make it easier for South Carolinians to purchase Scout EVs and make the state a more desirable location for forward-thinking automakers. The state’s economic and technological landscape will be significantly shaped by South Carolina’s legislative actions as the car industry increasingly moves toward electric mobility and alternative sales models.