EV Canada Newsletter Special Edition: Canada's EV Future

Electric vehicles, are the future of sustainable transportation in Canada and around the world. Over the past few years, electric vehicle use has increased significantly due to increased public awareness, public education, falling battery costs, advanced battery technology and available government incentives. In this issue, we take a look at what’s happening in the EV market today and what the future holds for EVs in Canada. Let’s take a look.

High fuel prices are pushing Canadians to consider EVs

As gas prices continue to climb and fluctuate, Canadians are becoming increasingly interested in switching to more fuel-efficient vehicle alternatives such as electric vehicles. About 60% of Canadian people say rising gas prices and challenges with the availability of fuel have convinced them enough that it is the right time to buy an EV. This represents a significant rise in interest of Electric vehicles (EVs) over recent years. Electricity costs do not fluctuate like the price of gas, which allows electric vehicle owners to roughly predict the cost of powering their vehicle for months in advance.

While EVs still make up only a small percentage of all new car sales, they’re expected to grow significantly over the next few years. In fact, some analysts predict that by 2025, EVs will be as common on Canadian roads as regular internal combustion engine cars. That means it’s time for automakers and governments to start planning for a future filled with battery-powered transportation.

More Incentives for Electric Cars will result in more sales

As more incentives become available for purchasing an electric vehicle, we’ll see more people jumping from traditional gasoline vehicles to EVs. While it will be a slow shift, eventually traditional gasoline-powered cars will become obsolete. There are numerous incentives available mostly from the federal government and provincial government. The Government of Canada has created a financial incentive to promote the acquisition of zero-emission vehicles like electric vehicles and plug-in hybrid electric vehicles. See the latest Government of Canada incentives HERE.

In the province of British Columbia, (currently) there is a $5,000 incentive being offered to people who want to buy an electric vehicle. Be sure to check your province’s current incentives!

With more incentives for electric vehicles, the demand for EVs is on the rising trend. As a result, we will see a greater number of people choosing to purchase an electric car over a traditional gasoline-powered vehicle.

Future: ZERO-Emission Vehicles by 2035

The Government of Canada has set a target goal for all new cars and trucks to be zero-emission by 2035. This means that all new cars and trucks will not produce any emissions, such as greenhouse gases or smog. The goal is to have 100% of cars and trucks running on electricity, hydrogen fuel cells, or other technologies that do not emit any pollutants. The Government plans to make major investments in this regard over the next 13 years. In order to achieve these goals, large investments in research and development are required. In addition, the Government of Canada will also invest in infrastructure like charging stations across Canada.

Government of Canada’s 2022 Budget

Recently, the federal government released the federal budget for 2022. The budget contains allocations for funds towards EVs and clean technology.

As per the budget (found HERE):

Zero-Emission Vehicles

Budget 2022 proposes a number of measures to reduce emissions from transportation by making zero-emission vehicles more affordable for Canadians and Canadian businesses:

  • $1.7 billion over five years to extend the Incentives for Zero-Emission Vehicles program until March 2025 to help more Canadians get behind the wheel of zero-emission vehicles.

  • $547.5 million over four years to launch a new purchase incentive program for medium- and heavy-duty ZEVs to help businesses upgrade their fleets.

  • Funding to build a national network of electric vehicle charging stations.

Clean Technology

  • Budget 2022 announces that the Department of Finance Canada will engage with experts to establish an investment tax credit of up to 30 per cent, focused on net-zero technologies, battery storage solutions, and clean hydrogen. The design details of the investment tax credit will be provided in the 2022 fall economic and fiscal update.

Conclusion

All in all, the future of EVs in Canada looks bright. The demand for EVs has been growing rapidly over the past few years and it is expected to continue doing so. In addition, with the support and investment into infrastructure like charging stations across Canada, we are likely to see more people buying EVs in the coming years.

In conclusion, here are some my personal thoughts:

  • Government incentives and rebates help get some Canadians into electric vehicles, whether they be fully battery electric or Plug-in Hybrid electric, but more funds are needed to reach more of the population and for a more widespread adoption of EVs.

  • Government incentives and rebates are not enough. Investments in community programs and initiatives to help educate the population is needed to accelerate adoption of EVs.

  • With more models from various brands currently available or releasing soon, EV sales will increase. As more electric SUVs and electric trucks are released, become readily available and affordable, we will see more widespread EV adoption. Larger families will be able switch over to electric SUVs and those who prefer trucks for either work, play, or being asked by all of their friends to help move, will also be able to make the switch to electric trucks. I believe there are a large number of people who want to switch to electric vehicles but are waiting for affordable larger SUVs and trucks to be available.

  • Charging infrastructure is needed - or is it? If battery technology can progress enough to create a reliable 1,000km battery, the need for an abundance of charging stations would not exist. Of course public chargers would still be needed but not as heavily relied upon.

  • There is not a single reason to make the move from ICEs to EVs, there are many:

    • Save money when “refueling” your vehicle.

    • Be more environmentally conscious. Electricity generation is MUCH less harmful to the environment and generate less greenhouse gas emissions than refining crude oil for gasoline.

    • Recharge at the convenience of your own home - avoid having to stop at a gas station.

    • Vehicle Performance. Many EVs outperform their gas counterparts in HP, torque and handling.

    • Save money over the life of the vehicle. Yes the initial cost of electric vehicles are substantial but over the course of 5 years (approx length of time the average person keeps a vehicle) the overall cost is significantly lower.

    • Save money on maintenance. No more oil changes!

If you found this issue informative and think others would appreciate it please share:

or if you have any feedback, please email me:

or leave a comment:

References: