Canada’s electric vehicle market will likely experience stagnation this year due to a lack of support from provincial governments — but federal incentives should provide a boost to the market, according to Frost and Sullivan.
“As there exists a notable lack of non-cash incentives in current provincial EV-centric policies and schemes, provincial governments, apart from the Big Three (Quebec, Ontario, British Columbia), need to introduce such incentives to push EV adoption,” said Ishaan Kolse, Automotive and Transportation Research Associate, Frost and Sullivan.
Kolse said charging station networks must be extended beyond southern Canada and spread throughout the entire country to help tackle the issue of range anxiety.
At this point, Canadian preference leans more towards hybrid electric vehicles, versus plug-in electric vehicles (PEVs). That being said, Frost and Sullivan said the gap in sales is getting smaller and may continue to do so as charging infrastructure improves from 2020 onward.
“As reflected by its 100.7% year-on-year growth, the xEV market (which include hybrid electric and plug-in EVs) is demonstrating substantial demand,” said Kolse. “Further, this is the time to invest in the supply chain to lower the cost of ownership of xEVs and increase the rate of adoption for potential customers.”
If the federal government’s sales and emission targets are reflected in the policies it establishes, Frost and Sullivan said EV growth could rise significantly in the near future. Doing so would pave the way for large growth opportunities for players in the market.
The company offered the following recommendations: (1) to have OEMs introduce xEV pick-ups before the market reaches saturation, (2) ensure the rapid extension of charging station infrastructure across the country to address range anxiety, (3) to have large OEMs and government leverage the availability and expertise of local EV makers, and (4) introduce quality-of-life and utility-based incentives to boost EV demand in Canada.
