EV brand Scout Motors can’t sell directly to customers in its home state. Here’s why

Scout Motors, backed by Volkswagen, is investing heavily in the electric SUV market, aiming to provide a seamless customer experience from purchase to maintenance. However, South Carolina's laws prohibit manufacturers from selling vehicles directly to consumers, requiring them to go through dealerships. Scout wants to change this law, not just for themselves, but for all EV makers, citing the need for freedom of choice and competition. The company argues that the dealership model would make their vehicles too expensive and complicate the customer experience. Supporters of the dealership model claim it allows buyers to compare prices and ensures quality service from local business owners. South Carolina is one of about two dozen states that ban direct sales, and Scout is pushing for a change in the law to allow them to sell directly to customers. The company has launched a media campaign and is seeking support from lawmakers, including Governor Henry McMaster, who wants to protect dealerships while also allowing direct sales. Scout's app-based experience would allow customers to buy and customize their vehicles in minutes, with financing, titling, and paperwork handled online. The company's plant in South Carolina is expected to open in 2027 and employ up to 4,000 people, but Scout is prepared to sell its vehicles through other states if the law isn't changed.