As policy shifts and consumer expectations reshape the electric vehicle market, California-based Karma Automotive positions itself as a uniquely American alternative to foreign luxury EV makers. In today’s episode of Inside Automotive, Karma President Marcus McCammon discusses how the company leverages its hybrid-electric platform, Southern California production, and franchise model to grow its presence in the ultra-luxury segment.
Karma Automotive, known for its high-end electric vehicles with extended range (EREV) technology, currently offers the Karma
The company operates 26 U.S. dealerships, three in Canada, six in Europe and plans to grow to 30–35 dealers next year. Karma is accepting franchise applications now, with an average onboarding time of three to six months. Initial dealer inventory starts at five vehicles, with most cars custom-ordered to meet consumer specifications.
Unlike many EV makers pursuing direct-to-consumer sales, Karma sticks with a franchise model. McCammon explains that this decision hinges on the personal touch dealerships provide. Karma’s vehicles sell at the highest end of the market, with prices ranging from $127,000 to just under $450,000, making customer experience and community relationships critical. The company keeps brand requirements minimal to allow integration into existing showrooms, but expects presentation standards to grow as dealership relationships mature.
All Karma vehicles, including their battery packs, are designed, engineered, and manufactured in Southern California. This domestic footprint exempts the brand from newly announced U.S. tariffs on Chinese-made EVs. McCammon notes that only 27% of Karma’s components are currently subject to tariffs, and that figure continues to decline.
Sales volume remains modest by design—just 250 vehicles are slated for production this year to maintain exclusivity. Karma’s top-performing dealer currently moves two to three units per month. McCammon sees future growth as the lineup expands and believes Karma’s niche is ideal for exotic car dealers looking to add a unique, forward-looking brand.
While the loss of the $7,500 federal EV tax credit may impact mass-market EVs, McCammon suggests it’s not a significant concern for Karma’s affluent buyers. Instead, Karma focuses on what it believes is a larger opportunity: blending American innovation, luxury, and performance in a format that’s rare in today’s market.
"Dealers understand how to engage with clients and how to create personal experiences. The dealer system globally has been well-established across the history of the autmotive industry. We sell ultra-luxury products at the highest end of the market... With that, you need a level of intimacy with the consumers; frankly, dealers do that." – Marques McCammon
