Canadians have repeatedly been told that electric vehicles (EVs) are the future. Legislation mandates all new vehicles sold in Canada must be electric by 2035 (60% by 2030). Statistics Canada reports in 2023, the total number of road motor vehicles registered in Canada was 25.7 million, down slightly (-0.3%) from 2022. The majority of registrations (91.7%) were light-duty vehicles, with EVs accounting for 3.9%, up from 3.0% in 2022. These consisted of 444,564 hybrid electric vehicles (HEVs), 327,732 battery electric vehicles (BEVs) and 145,010 plug-in hybrid electric vehicles (PHEVs). In comparison, 86,032 EVs were registered in 2021, and 56,165 in 2019.  As of March 2022, Ontario eliminated licence plate renewal fees for passenger vehicles, leading to a decrease in active registrations as some overlooked renewals, explaining part of the 2023 decline. Zero-emissions LDVs (battery and plug-in hybrid EVs) are forecast to grow from 480,000 today to about 1.4 million light-duty zero-emission vehicles on the road by 2026, 4.6 million by 2030, and 12.4 million by 2035.

Leading EV manufacturers of batteries or vehicles in Canada include: Honda, Tesla, Ford, Kia, GM, Chevrolet, Hyundai, Lion Electric, and Volkswagen, although over 50 different vehicle brands from a number of makers are sold in Canada.  Stellantis is the newest addition, making the Daytona EV in Windsor as of the end of 2024. On October 1, 2024, the federal government implemented a 100% surtax on Chinese-made EVs imported into Canada to protect Canada’s emerging EV industry.

As of March 1, NRCan posted that Canadian EV drivers have access to 27,181 public charging ports at 11,077 public charging stations across the country. Of those, 22,246 ports (9,605 stations) are Level 2 AC chargers, while 4,935 ports (1,791 stations) are Level 3 DC fast chargers. While about 80% of EV owners charge their vehicles at home, Canada is investing $1.2 billion to build 84,500 chargers nationwide by 2029.

All-electric vehicles produce zero direct emissions, but some electricity production itself may generate emissions. Opponents of EVs point to environmental costs of battery disposal and mining the materials to make them. PHEVs produce zero direct emissions in all-electric mode but can produce evaporative emissions. When using internal combustion engines, PHEVs produce some tailpipe emissions. In 2021, Canada’s transportation sector was the second largest source of emissions, accounting for 22%, with almost half coming from cars and light trucks. According to NRCan, zero-emissions EVs can help reduce 519,000 tonnes of emissions/year or 6.2 million tonnes over the vehicles’ lifetime. Phasing in 100% new EV sales by 2035 will reduce over 360 million tonnes of emissions by 2050, avoiding almost $100 billion in global damages.

Statista notes that Canada’s vast geography and extreme weather conditions present unique challenges in adopting EVs. The long distances between cities and harsh winters in many parts of Canada can impact driving range and vehicle performance. The projections are ambitious. Much has to be done to accelerate innovative technologies, add more chargers, including in rural, remote, Indigenous communities, and lower-income areas, ensure all new residential buildings are EV-ready by 2030, increase battery production, convert more assembly lines to electric, and make EVs more affordable.

By 2040, Transport Canada estimates a need for 1.42 million public and private ports; grid upgrades between 2025 and 2040 are estimated to cost $94.3 billion. J.D. Power, a global data analysis company, found that 50% of Canadians have never even sat in an EV… so there’s a huge educational curve. 2024 EV consideration in Canada was lower for the second consecutive year. 72% of vehicle shoppers say they are either “very unlikely” or “somewhat unlikely” to consider an EV as their next vehicle purchase up 5 points from 2023 (67%) and up 18 points from 2022. Lastly, the federal EV subsidy for buying a vehicle has just ended, which will slow Canadian purchases; manufacturers not so much, as several vehicles go to the USA. Many challenges await!

This Post was submitted by Climate Scorecard Canada Country Manager Diane Szoller.

Contact

Honourable Anita Anand, Minister of Transport Canada

330 Sparks Street, 29th Floor. Ottawa, ON K1A 0N5

Tel: (613) 991-0700, Email, Anita.Anand@parl.gc.ca