EV sales are still growing. So why are carmakers pulling back?
Some of the headlines about electric vehicles lately might give the impression that the market is headed for a crash. But new data shows electric vehicle sales are still growing in Canada, and have hit a record high.
More than 65,000 new zero-emission vehicles (ZEVs) — meaning battery electric and plug-in hybrid electric — were registered in the second quarter of this year, according to Statistics Canada. That’s equal to 12.9 per cent of all vehicle registrations. Over the same period five years ago, ZEVs made up just 3.4 per cent.
The trend hasn’t been entirely linear, but it’s clear sales are still growing — though perhaps not as quickly as had been expected.
“We’re past the early adopter phase,” said J.D. Ney at the market research firm J.D. Power, referring to customers who buy into new technologies before most people.
“The next step, though, is to convince a much wider swath of Canadians that electrification is right for them.”
That mainstream buyer, Ney says, is less wealthy and more practical, and it will take extra effort to convince them to ditch gas-powered cars.
When J.D. Power surveyed new vehicle shoppers in Canada, respondents who said they wouldn’t consider an EV said the models are still too expensive, and they worry about how far they can travel and how difficult it will be to charge the battery.
“If I make a mistake buying an EV or it doesn’t suit my lifestyle, that’s a $65,000 problem,” Ney said. “It’s the second biggest purchase that most Canadians will make. And so I think they are rightfully cautious.”
That could explain why sales of plug-in hybrids (PHEVs) are revving up, with new registrations jumping 43.1 per cent in the second quarter compared with the same period last year. PHEVs allow drivers to travel moderate distances on electric power. Once the battery is depleted, the gas-powered engine can take over. It’s a compromise that may appeal to customers concerned about range and charging infrastructure, offering a less risky choice than going all-electric.
Shifting gears
Just a few years ago, carmakers were investing billions of dollars into their electric lineups, and pledging they would soon stop building gas-powered cars. But customers aren’t going fully electric as quickly as predicted, so many companies are making adjustments to better meet demand.
General Motors has scaled back its electric vehicle production this year and will build an estimated 50,000 fewer EVs. Ford is shifting its strategy, stalling plans for an electric SUV and building a hybrid version instead. Despite all that, carmakers insist they’re still committed to the cause.
Recent headlines have suggested that consumers are losing interest in electric vehicles, but a closer look at the trends tells a different story. CBC’s Nisha Patel breaks down where we’re at in the EV transition and why experts say the future is still electric.
“The thought…
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