Canada’s pulling up the rear in the EV race

Almost half of Canadians want their next car to be an EV, which might be a big ask as the country falls behind in the race to electrify the roads.   

Driving the news: Canada fell five spots in an annual index of EV adoption preparedness by Ernst & Young, ranking second to last out of the 14 countries surveyed. 

  • The report factors in supply, demand, and policies for EVs. China, with its impressive production power and high consumer demand, ranked number one.

This may come as a surprise, considering Canada recently committed to becoming an EV-battery production hub and plans to add 50,000 more EV charging stations by 2026. 

Yes, but: Canada has talked the talk, but others have done much more. Second-place Norway, for instance, has introduced better tax breaks and EV-specific lanes and parking spaces. In fact, the incentives have been so effective that the country is now rolling back. 

Consumer demand in Canada for EVs is high but lagging behind the global average of 52% because of high costs (up to 30% pricier than gas vehicles) and too few charging stations. 

Canada does offer incentives for buying EVs, but the base price of most eligible vehicles is capped at only $55,000, which is not as generous as in many European countries

Why it matters: Be it for environmental reasons or because of high gas prices, Canadians want to be part of the EV transition. But it’s up to the government to help make it happen.