Canadian car buyers are gradually abandoning electric vehicles due to cost issues
According to J D. According to the latest survey by Power Canada, an increasing number of Canadian car buyers are avoiding electric vehicles due to tight household budgets and rising borrowing costs. The survey collected nearly 3000 consumer feedback, and the results showed that 72% of car buyers are unlikely to consider purchasing an electric vehicle for their next purchase, a significant increase from 67% last year and 53% in 2022.
The main concerns include limited driving distance per charge (known as' range anxiety '), high purchase prices, and inadequate charging infrastructure. These three issues interact with each other, posing challenges to the adoption of electric vehicles.
J. D. Ney, the head of J.D. Power Canada's automotive business, pointed out in an interview with Yahoo Finance Canada that the affordability of electric vehicles is the key to purchasing decisions. A few years ago, the interest rate of the Bank of Canada was still around 1%, but now the economic situation has undergone tremendous changes. If car buyers cannot afford electric vehicles, then other factors such as range and charging infrastructure considerations cannot be discussed
Image source: AP Photo/Marcio Jose Sanchez
Although Canada has taken a series of measures to promote electric vehicles, J D. According to Power's data, Canadian car buyers are far less interested in electric vehicles than in the United States. A survey shows that only 11% of Canadian car buyers consider electric vehicles when purchasing a new car, while the proportion in the United States reaches 24%.
Statistics show that electric vehicles and plug-in hybrid vehicles accounted for 12% of new car registrations in Canada in the fourth quarter of 2023, but decreased by nearly 5000 units compared to the previous quarter. Despite the ambitious goal set by the federal government to phase out sales of internal combustion engine vehicles by 2035 and achieve gradually increasing sales of zero emission vehicles, the actual progress so far seems less than ideal.
In Quebec and British Columbia, government purchase incentive policies have significantly increased consumer interest in electric vehicles, but in major provinces such as Ontario, the lack of sufficient policy support makes consumer purchasing decisions more complex.
Ney emphasized, "The final cost of purchasing an electric vehicle may vary greatly depending on where you live in Canada