Atlantic Canada's largest auto dealership group is getting out of the used electric vehicle business, citing “lack of demand of EVs in the market.”
Steele Auto Group of Dartmouth, N.S., will discontinue its All EV business, effective June 1, less than two years after it acquired the chain.
On July 26, 2021, Steele bought All EV Canada, which stocks only used EVs — the majority of them Teslas. The original purchase was comprised of two locations: Burnside, N.S., as well as a store in Stratford, PEI.
Two months later, Steele said it would be moving the Burnside location it to “a spectacular new location in Halifax.” It then added All EV locations in Corner Brook and St. John’s, NL, and Fredericton, NB.
The dealership group also has electric-vehicle full-service locations in Halifax and Moncton. It’s not clear if Steele plans to cease operations of those, too.
A spokesperson for the group wasn’t immediately available for comment.
Steele announced the end of its All EV business via posts on Instagram and Facebook.
“After careful consideration and evaluation of the current market conditions, unfortunately, Steele Auto Group has made the difficult decision to discontinue the All EV business, effective June 1, 2023,” the posts say. “Since the acquisition of All EV in July 2021, we have endeavoured to consistently deliver exceptional quality and maintain strong relationships with our clients.
“However, the lack of demand for EV’s in the market has made it increasingly challenging for us to sustain operations and remain profitable.”
All EV's website on May 31 listed 50 used EVs for sale.
Sales of new electric vehicles however, were on the rise in 2022. S&P Global Mobility found that battery-electric (BEV) and plug-in hybrid vehicles (PHEV) accounted for 8.9 per cent of all new vehicle registrations last year. But, according to Plug'n Drive, a non-profit organization committed to accelerating electric vehicle adoption in Canada, sales of used EVs are not tracked in Canada.
Steele believed in the All EV purchase in 2021.
Chief Operating Officer Kim Day told Automotive News Canada at the time that EVs are “the way of the future” and saw the expansion “as an opportunity to accelerate adoption of EVs in our markets.”
It isn’t clear if Steele plans to sell the stores. Nor is it clear what happens to staff.
Steele owns 60 new-vehicle dealerships selling 29 brands throughout Atlantic Canada and in Texas, two used-vehicle locations and nine collision centres.
