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Automakers think Canada’s 2035 EV goal needs to be adjusted

A bumpy road ahead for Canada's EV ambitions

The Federal government of Canada laid out its final version of the Electric Vehicle Availability Standard last year, stating that all new vehicles sold by the year 2035 must be zero-emission. The ambitious plan is already in effect, though automakers are skeptical if it will reach the government’s target.

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According to a new Bloomberg report, automakers in Canada believe that there isn’t enough demand for EVs, and doubt if it will increase significantly over the coming years. Additionally, automakers like Toyota and Honda believe that Canadians would be eager to switch if EVs become more affordable and offer better range. Additionally, a sufficient EV charging infrastructure would also help customers make the leap, but all of those prerequisites haven’t been met yet.

“We need to make sure that we’re revisiting targets to align targets with reality,” said Frank Voss, president of Toyota Motor Manufacturing Canada, in an interview with Bloomberg. “The government can only do so much to entice consumers to purchase vehicles that they would like to see implemented. Consumers will choose what they need.”

Current stats suggest that roughly 11 percent of new vehicles registered in Canada in 2023 were zer0-emission, which does represent a 49.4 percent increase from 2022, but also proves that EVs are still a small part of the Canadian automotive market. Further, the average electric vehicle, even after the rebates, comes out to be roughly $7,000 more expensive than the average gas vehicle, further leading to muted adoption.

Elsewhere, the report quotes range anxiety and poor battery performance in Canada’s frigid temperature to be the main customer concerns. Automakers are calling out the Canadian government to adjust its ambitious targets, and potentially align itself with the U.S.’ target of over 50 percent of new vehicle sales to be EV by 2032.

You can check out the full Bloomberg report, and why it has lowered its estimates for EV sales in Canada here.

Image credit: Shutterstock

Source: Bloomberg

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