The year 2023 saw a significant increase in the number of electric vehicles (EVs) sold in Canada, with over three times more EVs registered than in 2019. Despite rising interest rates, new registrations for battery, hybrid, and plug-in electric cars rose to over 320,000 from 94,500 in 2019. Even when excluding hybrid electrics, which emit greenhouse gas emissions, the numbers still showed a significant increase to 184,578 new EV registrations in 2023. Despite the high interest rates during this time period, new EV registrations continued to rise, indicating a growing interest in EVs among Canadians.
Economics professor Moshe Lander noted that the increasing EV sales were likely driven by people who were environmentally conscious. The trend of buying EVs has expanded beyond high wealth individuals to include middle-income Canadians. Approximately one-fifth of the vehicles sold in 2023 were EVs or hybrids, indicating a growing acceptance and adoption of these vehicles. Lander also emphasized the need for infrastructure development to support the growing number of EVs on the roads.
Tim Reuss of the Canadian Auto Dealers Association highlighted the challenges of transitioning to EVs, particularly the need for adequate charging infrastructure. Lack of charging stations in residential, commercial, and recreational areas could hamper the widespread adoption of EVs. Different provinces in Canada have varying rates of EV adoption, with Quebec leading in new EV registrations. Both federal and provincial governments offer subsidies for EV purchases, but more investment in infrastructure is needed to support the transition to electric vehicles.
Reuss and Lander both emphasized the importance of government policies and regulations in driving the transition to EVs. The federal government’s recent regulations for EVs include incentives and fees for automakers to sell EVs and build charging stations. However, Reuss pointed out that the transition to EVs is happening unevenly and practical challenges remain for rural drivers. Both experts agreed that government actions will play a crucial role in shaping the speed and effectiveness of the transition to electric vehicles in Canada.
Despite the positive trend of increasing EV sales, experts cautioned that the federal government’s target of having only zero-emission vehicles sold by 2035 still faces challenges. Questions have been raised about the stability of the EV market, especially with the recent decline in Tesla sales. Reuss highlighted the need for tailored policies that address the needs of both urban and rural areas, as well as differences between provinces. Lander suggested that the government could do more to support the transition to EVs, stating that the timeline for widespread adoption of electric vehicles is now more in the hands of the government than individual buyers.
