Canadians less likely than Americans to consider EV purchases, study finds

Canadians are less likely than their U.S. counterparts to consider electric vehicles, according to a new study by J.D. Power.

The inaugural J.D. Power Canada Electric Vehicle Consideration (EVC) Study found that 53 per cent of consumers in Canada say they are either “very unlikely” or “somewhat unlikely” to consider an EV for their next vehicle purchase. That’s in contrast to the United States, where 59 per cent of consumers they are either “very likely” or “somewhat likely” to consider an EV as their next new vehicle.

J.D. Ney, director of automotive practice lead at J.D. Power Canada, says there are “several unique systemic challenges in Canada” that lead to hesitancy over EVs.

For example, six in 10 Canadian consumers who say they are unlikely to consider an EV cite purchase price as a factor. That compares with only 44 per cent of U.S. consumers, who say the same.

While Canada has a federal EV rebate worth up to $5,000, only British Columbia and Quebec offer additional sizeable provincial rebates, upwards of $7,000 in Quebec beginning July 1, 2022. That’s down $1,000 from the previous maximum rebate of $8,000.

In the United States, the federal EV tax credit remains in effect for up to $7,500. At least eight states, including California and New York, offer rebates of at least $2,000 on top of the federal incentive.

B.C. and Quebec residents are the most likely to consider buying EVs.

The rate of EV consideration is highest in B.C., where 59 per cent of consumers indicated interest in EV ownership while 50 per cent of Quebec residents said the same.

Residents in Ontario (47 per cent), on the Prairies (38 per cent) and in Atlantic Canada residents (35 per cent) show the least interest.

Limited driving distance per charge is cited by 65 per cent of Canadian respondents who say they are “somewhat unlikely” or “very unlikely” to consider an EV, compared with 44 per cent of consumers in America with a similar consideration level. Canada’s colder climate also likely plays into this reticence, with 44 per cent citing range performance in extreme temperatures as a barrier to consideration, the study found.

"The good news is that EV consideration increases dramatically across a number of metrics once consumers are either better informed on the capabilities of the newest EVs or, better yet, have personal experience with them,” Ney said.

The likelihood of EV consideration is just 15 per cent among those who have had no experience with electric vehicles. That number jumps to 22 per cent among those who have been passengers in an EV and to 42 per cent among those who have driven one.

Nearly half (49 per cent) of those who own an EV will consider another EV for their next vehicle purchase.

The study measured responses from 3,701 consumers and was fielded in April-May 2022.