Canadian EV Sales Set Records, Defying Global Trends
Canadian EV Sales Set Records, Defying Global Trends
Posted on November 5, 2024
In the second quarter of this year, Canadian electric vehicle (EV) sales reached record-breaking levels, according to new data from Statistics Canada. While global EV markets have faced production slowdowns and decreasing demand, Canada has bucked the trend. Battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) saw their highest-ever registration totals, with over 48,000 BEVs registered and PHEVs increasing by 43% compared to the previous year. Low-emission vehicles, including non-plug-in hybrids, captured 20.9% of the total vehicle market, exceeding 100,000 registrations for the first time in a single quarter.
This surge comes amid a wider recovery in the Canadian automotive market, where new vehicle registrations reached their highest level since before the COVID-19 pandemic. Erik Johnson, a senior economist at BMO, expressed surprise at Canada’s growth in EV sales, noting it contrasts with the flat demand seen in other markets like the U.S. He attributes part of this increase to an improved supply of vehicles, as inventory shortages that plagued the industry for the last two years have eased, allowing more Canadians to access new cars.
Quebec led the way in BEV sales, accounting for over half of the total registrations, with British Columbia following closely behind. Johnson suggests that the abundance of cheap electricity in provinces like Quebec and B.C. makes plug-in vehicles more appealing. In contrast, hybrid vehicle sales have remained steady, showing a different trend from the U.S., where hybrids are experiencing their best year.
Looking ahead, the continued growth of Canada’s EV market may depend on several factors, including ongoing subsidies and the availability of more diverse EV models. Johnson notes that Ontario lags behind Quebec in EV adoption, and the market may face challenges with reduced access to cheaper Chinese EVs. The question remains whether North American producers will rise to the occasion with more affordable and mass-market EV options to meet increasing demand.
