EY: Increased EV model variety emerges as key purchase motivator

• EV purchase intent in Canada dropped nearly 10% below global average
• Residential charging units (57%) and electrical costs (54%) ranked as top concerns
• 28% of Canadians say monetary incentives are a top consideration when purchasing

TORONTO, Nov. 27, 2024 /CNW/ - Traditional territory of the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples – Demand for electric vehicles (EV) has dipped among prospective consumers in Canada in 2024, according to the latest EY Mobility Consumer Index report. While overall car purchase intent in Canada saw a 6% rise from 2023, EV purchase intent dropped nearly 10% below global average, which saw a 3% rise.

"We're in the middle of a massive mobility shift and the dip in Canada's EV demand is a wake-up call," explains Jennifer Rogers, Automotive and Transportation Leader at EY Canada. "It's evident that investment has been prioritized in EV development. Now is the time to shift focus to overcome infrastructure hurdles and address consumer concerns head-on if Canada is to achieve its ambitious 2035 targets."

Inadequate infrastructure remains a key hurdle for energy transition

The survey reveals while 48% of Canadians plan to buy cars in the coming year, only half are considering EVs. This decline in interest may be due to the novelty of EV technology plateauing.

Over half of respondents cited the installation costs of home charging units (57%) and electrical costs (54%) as primary concerns, while 42% reported long wait times at public charging.

Additionally, 33% of Canadians are not considering buying an EV as their next purchase due to concerns about limited driving range, surpassing upfront purchase cost (30%) as the top concern. Fear over costly battery replacement has also emerged as the third-highest concern (27%), matching the lack of charging stations.

Government subsidies an increasing motivator for purchasing

Monetary incentives have become increasingly important, rising 5% year-over-year with nearly a third of Canadian respondents citing it as a key motivator for purchasing an EV. This highlights the ongoing significance of government subsidies like the federal iZEV Program and its provincial counterparts, which offset the higher cost of EVs compared to combustion models.

High fuel prices and environmental concerns continue to incentivize

Fuel costs and climate-related concerns have held firm as the top two purchase motivators, mirroring 2023. Forty-five per cent of Canadians — down slightly from 49% in 2023 — indicate steeper fuel prices as the main reason for considering an EV. Although recording a 6% dip from the year prior, environmental concerns have also retained their spot in second place.

A new addition to the list of motivators is the increased variety of EV models, with 23% of respondents indicating this as a factor.

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SOURCE EY (Ernst & Young)