TORONTO / VANCOUVER — Canada has an affordable EV problem. Lower-priced new electric vehicles have become an extinct species here, and that simply isn’t the case in other countries.
Accordingly, Clean Energy Canada analyzed the European car market to see what affordable electric options Europeans enjoy today compared to Canadians, the results of which are highlighted in a new report, Missing Out.
In short, Europe has 21 EV models selling for less than the equivalent of $40,000 Canadian, and only one of those cars, a small, relatively low-range Fiat, is available in Canada (it is the only sub-$40,000 EV available in Canada, period).
All but three of these EVs have driving ranges of over 300 kilometres, and only seven of them are from Chinese automakers, or exactly one-third of the list. Ten are European, three are Japanese, and one is South Korean. None are American.
Another recent Clean Energy Canada report, Empowering Households—informed by market research conducted in the Toronto and Vancouver metro regions—found that only 27% of respondents were willing to spend more than $40,000 on a new EV. Whereas a car coming in under $40,000 drastically increases the pool of potential buyers to roughly half the population (49%).
EVs are proven to save consumers money over the lifetime of the vehicle, and most Canadians are aware of this, but a lower upfront price is still necessary to help more of them make the switch and enjoy those savings.
In other words, Canada badly needs a few good EV options under $40,000. While there are many great EVs for sale starting at around $45,000, the economy EV category presently doesn’t exist in this country.
One solution: allowing the sale of any vehicle that has passed safety and environmental standards in Europe. This would increase the availability of car brands and models in Canada, with an eye to bringing in some of these more affordable EVs.
Canada’s Electric Vehicle Availability Standard, which the federal government has currently paused pending a review, is another important tool to help drive model availability over time, as automakers must provide consumers with lower-priced options to meet more of the market.
Indeed, Clean Energy Canada supports a broader, complementary suite of measures, including lowering the tariff on Chinese EVs to ensure an adequately competitive market and bringing back federal EV rebates for a limited period to help households address current upfront costs.
After all, EVs already save their drivers thousands of dollars a year on gas, but lower-priced ones would unlock their benefits for more Canadians, particularly those who would benefit most from their monthly savings.
RESOURCES
Report | Missing Out
