They send more cars to the places where they expect them to be more popular, it's as simple as that and just basic economics. Delivery charges aren't relevant, and are essentially paid by the buyer aanyway. California got tons of them because high mpg cars are extremely popular here, for a variety of reasons. Namely our higher gas prices (than the rest of the US), our social stigma against people who don't buy efficient cars, and our public policies that reward buying such cars. Also, Niros (and crossover SUVs in general) are a great car for Californians' lifestyles that typically involve a mix of lots of weekday driving on highways and in the city, and weekend trips to the outdoors. There aren't a lot of HEV/PHEV/EV crossover SUVs to pick from, and Niro happens to be the best value for one (I believe), so that's why it's so popular here. I usually see at least 3 or 4 every day on the road during my commutes, while people living in other areas typically report that Niro sightings are quite rare.