Boosting Electric Vehicle Adoption in Canada
Vehicle manufacturers are collectively bringing to market a growing of number of electric vehicles across all vehicle segments meeting consumer utility needs. More than 115 models are available to Canadians.
In Canada, Québec and British Columbia lead in the adoption of plug-in electric vehicles, plug-in electric hybrid vehicles (PHEVs) and battery electric vehicles (BEVs). This is because of a comprehensive set of policies aimed at increasing acceptance of these technologies. While the currently aligned Canada-U.S. light duty vehicle greenhouse gas (GHG) emission regulations also compel manufacturers to bring a growing number of these vehicles to market, it remains essential that market supports remain in place now and for a period into the future to encourage consumer adoption of these technologies.
Necessary electric vehicle market support policies:
- Consumer Electric Vehicle Purchase Incentives
There is a direct correlation between increased consumer electric & fuel cell vehicle adoption rates in those jurisdictions that provide substantial consumer point of purchase incentives and other consumer supports. Consumers must see a consistent and predictable incentive program to have confidence in choosing this vehicle technology until electric vehicles reach price parity with comparable model internal combustion engine vehicles (expected around 2030). The high cost of electric vehicles remains a key consideration for consumers and at this time, vehicle manufacturers are providing built-in electric vehicle price incentives that in many cases exceed the total government consumer incentives; these will continue depending on the battery development cost curve and until price parity is achieved with comparable internal combustion engine vehicles.
Importantly, where a jurisdiction has eliminated or materially reduced the availability of consumer electric vehicle purchase incentives, the negative sales impact is quick and dramatic.(Source: https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/making-electric-vehicles-profitable; https://www.cargroup.org/wp-content/uploads/2018/01/Technology_Roadmap_Combined_23JAN18.pdf) - Charging Infrastructure
Electric vehicle purchasers knowing that they will have ready access to recharging outlets is essential to reducing range anxiety and increasing their confidence in making their decision to purchase this new technology. Governments, agencies and employers are highly encouraged to continue efforts to expand charging infrastructure in the public domain and through individual consumer supports. At present charging infrastructure is poorly distributed across Canada. - Consumer Education
Support for effective consumer education and demonstration programs is another critical area for government- industry collaboration. Reducing the mystique around electric vehicle technology and providing consumers with information that will help them understand the value proposition for an electric vehicle that meets their transportation needs. - Other
Additional indirect consumer motivation supports, combined with the above have been influential in a consumers’ consideration of an electric vehicle purchase. These may include but not be limited to: high occupancy vehicle lane access, preferential parking and reduced or eliminated road tolls. Industry polling identified a range of policies and programs that would encourage consumers to consider an electric vehicle for their next purchase.
(Source: http://www.cvma.ca/press-release/new-survey-underscores-need-ambitious-government-efforts-convince-canadians-purchase-electric-vehicles/)
Zero Emission Vehicle (ZEV) Regulation
ZEV mandates such as the regulations in Québec, British Columbia and at the federal level duplicates existing Greenhouse Gas (GHG) emission standards while adding unnecessary regulatory burden without additional environmental benefit.
Consumer demand for ZEVs is not driven by regulatory mandates, but by market conditions, incentives, consumer interest, infrastructure, and overall economic health. Rigid mandate risks undermining consumer affordability and choice, potentially forcing Canadians to forego the purchase of new more fuel-efficient vehicles if dealers are required to supply vehicles that may not suit consumers’ needs or budget.
Accelerated On-Road Fleet Turnover – A Significant Opportunity for Transportation-related Greenhouse Gas reduction
Accelerating the ZEV transition is most effective when market-based incentives are implemented that genuinely and sustainably stimulate consumer demand, making ZEVs more accessible and affordable. Vehicle incentives should be designed to displace older, higher GHG emitting vehicles, with newer ICE vehicles (with lower GHG emissions), hybrids, or battery electric vehicles. This ultimately, and more rapidly, drives lower GHG from all on-road light duty vehicles.
