The Outlook of EVs in Canada and What the Future Holds

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Electric vehicles (EVs) have been making waves in the automotive industry for several years now, and their popularity continues to grow. As countries around the world take steps to reduce their carbon footprint and combat climate change, many are looking to electric cars as a way to decrease greenhouse gas emissions. But will EVs catch on in Canada? In this article, we will explore the current state of the electric vehicle market in Canada and what the future may hold.

Current State of the EV Market in Canada

While electric cars are becoming more common on Canadian roads, they still make up a relatively small percentage of the overall market. According to data from Electric Mobility Canada, there were 34,313 new zero-emission vehicles (ZEVs) registered in the third quarter of 2022, comprising 8.7% of total new motor vehicle registrations. However, this represents a significant increase from just a few years ago. In 2015, there were just 4,191 new EVs registered in Canada.

Pricing

One of the main barriers to widespread adoption of EVs in Canada is their high cost. Electric cars are often more expensive than traditional gasoline-powered vehicles, and many Canadians are unwilling or unable to pay the premium. However, as technology improves and economies of scale are achieved, the cost of EVs is expected to come down, making them more accessible to a wider range of consumers.

Making EVs More Affordable

We’re already seeing this in other markets like Australia where Chinese EV and battery tech leader, BYD, has entered the market, bringing their more affordable models like the Atto 3. The Atto 3 is among the cheapest EVs you can get in Australia right now but is still highly acclaimed by both customers and critics alike. It was rated 5 Stars in safety by A-NCAP and Euro-NCAP and has won several car of the year awards from Australian automotive sites and Australian media. It’s also one of the best rated EVs in the country by customers. 

EVs like the Atto 3 prove that quality and affordability can be achieved at the same time, and with BYD, along with China’s CATL being the two battery tech leaders in the world at the moment, it can ease the concerns people have on current battery tech as well. CATL and BYD already supply batteries to companies like Tesla, BMW, Mercedes, Porsche, Toyota, VW etc. and BYD’s innovative blade batteries have shown great performance while offering stellar safety.  

By opening up the market to more competition and welcoming leading brands to set foot in Canada, consumers benefit by being able to buy EVs at more affordable prices but also getting the latest tech at the same time.

Lack of Charging Infrastructure

Another challenge facing the EV market in Canada is the lack of charging infrastructure. While there are over 6,000 public charging stations in Canada, many of them are concentrated in urban areas, leaving rural and remote areas with limited options. This can be a major barrier for Canadians who live in areas without easy access to charging stations.

While there are plans set in place for more EV charging stations to be built, compared to countries like China, where both EV adoption rate is a lot higher and charging infrastructure is way more complete, there is still a long way to go.

Despite these challenges, there are several factors that suggest that EVs may catch on in Canada in the coming years.

Government Support

The Canadian government has taken steps to promote the adoption of EVs by offering rebates and incentives to consumers who purchase electric cars. The federal government currently offers a rebate of up to $5,000 for new EV purchases, and several provinces offer additional incentives. For example, in Quebec, consumers can receive up to $8,000 in rebates for the purchase of an EV.

In addition to incentives for consumers, the Canadian government has also invested in charging infrastructure. In 2019, the federal government announced an investment of $130 million to build new charging stations across the country. This investment is expected to result in the installation of over 5,000 new charging stations in both urban and rural areas.

Improved Technology

As technology continues to improve, EVs are becoming more practical and accessible for a wider range of consumers. Range anxiety, or the fear that an EV will run out of battery power before reaching its destination, is becoming less of an issue as the range of electric cars continues to improve. Many newer models can travel over 300 kilometers on a single charge, and some can even travel over 500 kilometers.

Battery technology is also improving, making EVs more reliable and efficient. While concerns about the environmental impact of battery production and disposal remain, the overall impact of EVs on the environment is still lower than that of traditional gasoline-powered vehicles.

Chinese company BYD’s PHEV models, which are plug-in hybrids, already have a pure electric range of 200KM or more. Which should be enough for most people’s daily driving needs. The motor is only used to charge the battery, so this means, under normal circumstances, the car can be used as an electric-only vehicle. You don’t need to go to the gas station at all unless you’re doing longer trips. Vehicles like these may be ideal for places like Canada where there is a large land mass but limited charging infrastructure.

On the other hand, China’s CATL has just announced a semi-solid state product with condensed materials having an energy density of 500 Watt hours per kilogramme, good enough for airplanes even. This is almost double the amount of energy density achieved by the best EV batteries currently. CATL stated it will be able to start mass production of the condensed matter battery for EV uses later this year.   

Consumer Demand

Consumer demand for EVs is increasing as awareness of their benefits grows. Many Canadians are concerned about the impact of climate change and are looking for ways to reduce their carbon footprint. As awareness of the environmental benefits of EVs increases, more Canadians may choose to make the switch to electric cars.

In addition to environmental concerns, EVs also offer several other benefits that may appeal to consumers. Electric cars are often quieter and smoother than traditional gasoline-powered vehicles, and they require less maintenance since they have fewer moving parts. Plus, with the cost of electricity generally lower than gasoline, EVs can save consumers money in the long run. 

A lot of early adopters have raved about these benefits EVs offer and some of them have even stated they would never go back to gasoline powered cars after driving an EV. Claiming that the smoothness of EVs when it comes to acceleration and the instant torque response are unmatched. It’s true that many EVs, even heavy ones, are posting 0 to 100KM/hour acceleration times that can only be matched traditionally by non-EV supercars.

While EVs still only make up a small percentage of new car purchases in Canada, their footprint is growing. As new brands enter the market, bringing more affordable options, battery technology improves and charging infrastructure becomes more complete. There is good reason to believe that they will be more popular, and one day even become popular enough to be the majority of new car sales in Canada in the future.

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