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J.D. Power study finds consumer EV consideration in Canada significantly lags US

Canada’s electric vehicle (EV) holdouts are digging in their heels, with That’s according to Study,SM released today, which finds that

Overall consumer EV consideration in Canada has declined 13 percentage points to 34% from 47% in 2022, and significantly lags EV consideration rates in the US where 61% of consumers say they are either “very likely” or “somewhat likely” to consider purchasing an EV this year, according to the second annual J.D. Power Canada Electric Vehicle Consideration (EVC) Study.

By contrast, in Canada, a majority (66%) say they are either “very unlikely” or “somewhat unlikely” to consider an EV for their next vehicle purchase.

Despite current legislation that is pushing hard for EV adoption, consumers in Canada are still not sold on the idea of automotive electrification. Growing concerns about affordability and infrastructure (both from charging and electrical grid perspectives), have caused a significant decline in the number of consumers who see themselves in the market for an EV anytime soon.

Despite a lower consideration rate year over year and a widening consideration gap to automobile shoppers in the US, there is still a committed group—34%—of consumers in Canada who say they are likely to consider an EV in the next 24 months.

—J.D. Ney, director of the automotive practice at J.D. Power Canada

Following are key findings of the 2023 Canada study:

  • Nearly two-thirds (66%) of automobile shoppers in Canada say they are either “very unlikely” or “somewhat unlikely” to consider an EV for their next vehicle purchase. That is up 13 percentage points from 2022 (53%).

  • Among consumers in the Canadian market who say they will not consider an EV for their next vehicle purchase, limited driving distance per charge is the most frequently cited obstacle to consideration (63%). It is followed by purchase price (59%) and lack of charging station availability (55%).

  • Despite widespread awareness of EVs and growing efforts by manufacturers to make EV test drives available to consumers, 55% of vehicle shoppers have never been in an EV. Among consumers in Canada who have rented, borrowed or test driven an EV, 43% say they are “somewhat likely” or “very likely” to consider an EV.

  • The rate of EV consideration is highest in Western Canada, with 46% of consumers in British Columbia indicating interest in EV ownership. Residents of Québec (39%) and Ontario (34%) have middling interest in EV ownership, while residents in the Atlantic Canada (26%) and Prairie (22%) regions have the least interest.

Against this backdrop, it is going to take significant investment and close collaboration between manufacturers and lawmakers to address issues of overall affordability, capability and infrastructure before Canada can reach its national and provincial EV sales targets.

—J.D. Ney

The Canada Electric Vehicle Consideration (EVC) Study is an annual industry benchmark for gauging EV shopper consideration. Study content includes overall EV consideration by geography; demographics; vehicle experience and use; lifestyle; and psychographics. It also includes model-level consideration details such as cross-shopping and “why buy” findings and analysis of reasons for EV rejection. This year’s study measured responses from 4,488 consumers and was fielded in April-May 2023.

Comments

Jer

This of course does not appear to consider/ emphasize the BEV / PHEV prioritization issue. If they could get their exact same ICE model +/- 25% price but with 'added' 100+ miles electric-only setting to their traditional gas/diesel range as a PHEV - all else being equal, one wonders if this might affect consideration. I didn't read the Study to see if it was clear that it had to be a BEV - i.e. full electrification. All the more reason to embrace the 'get the hybrid right across the board' first or risk having electrification become minimal, unconnected between regions, and never reaching a critical 'economies of scale'. But of course, environmentalism, and those who advocate it passionately, has rarely been about 'compromise and steady moderation of vision' just 'grudging (some may say sulking) compromise in reality'.

Gorr

The main problen in canada is the cold and snow in winter where the battery is 50% efficient and im thus not interrested to buy. Hydrogen cars would be a better choice but wait cemvita gold hydrogen is not implemented yet and maybe they would not release plenty of hydrogen never, this is a catastrophy.

D

The Canadian car market is quite a bit more price sensitive than the US market, and EVs in general are more expensive than equivalent ICE versions. Looking at historical data, when a car like the Toyota Camry was a US top-seller, in Canada it would have been the Corolla - one class down

If that translates to EV sales in Canada, the lower end of the EV market - Bolt and Leaf - are not great choices or in great supply. While they might be good urban runabout (2nd or 3rd car) choices, the value proposition is not really there. I suspect hybrid and PHEV vehicles will remain more popular in Canada for some time, given the range and infrastructure issues and the effect of cold weather

Sure, Norway proves you can make it happen, but then its entire population is less than Toronto's, and the rural driving distances pale by comparison. Canadians still drive high mileages annually, partly due to mobility (moving away for work) and expensive and unreliable air connections

Canada has been something of a test market for entry-level vehicles in the past (Lada and Yugo) so we may see some cheaper (and no doubt nasty) Asian EVs appearing if they can meet Transport Canada safety regs

SJC

D that was a good assessment thank you for your comment

Bernard

Geography isn't as big an issue as you would think. Most Canadians live in a few large urban areas. I don't think that weather is much of an issue either. Gasoline cars suffer even more from cold weather range limitations. Canadians know to fill-up before going on a long journey in winter.
I think that the most obvious reason is a lack of government support for EVs. Canada is a land of cheap electricity and expensive gasoline (compared to the US), but only two provinces offer any kind of incentives for EV use (British Columbia and Quebec). The largest province, Ontario, has been hostile to EVs, even as it is courting EV manufacturing. Strangely, Ontario imports all of its gasoline, and produces lots of electricity, but it thinks that "private enterprise" will provide the necessary infrastructure.

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