New EV availability normal will scale back wait occasions and assist Canadians unlock value financial savings

December 19, 2023

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OTTAWA — Joanna Kyriazis, director of public affairs at Clear Vitality Canada, made the next assertion in response to the federal authorities’s last electrical automobile availability normal:

“With file numbers of Canadians selecting an EV over a fuel automotive in latest months, it’s clear that they need electrical automobiles. And right this moment’s new rules, which would require automakers to make an rising proportion of EVs obtainable on the market en path to 100% by 2035, will make it rather a lot simpler to get behind the wheel.

“Canadians at present drive the least fuel-efficient automobiles on the planet—they usually’re paying the worth on the fuel pump. By making EVs extra obtainable, the federal authorities is making certain that extra Canadians will have the ability to entry hundreds in financial savings.

“Going electrical can save between $30,000 and $50,000 over a ten-year possession interval, even taking into consideration the acquisition value, in accordance to a brand new report. In reality, reductions in battery prices in addition to obtainable rebates imply that some EVs are already cheaper to purchase than fossil-fuelled equivalents, permitting drivers to begin saving the second they drive off the lot. What’s extra, EV availability rules have been proven to chop EV sticker costs even additional by requiring automakers to place inexpensive fashions in the marketplace as a substitute of specializing in luxurious fashions.

“It’s a tried and examined coverage. Each B.C. and Quebec, which lead Canada in EV gross sales, have their very own variations of this coverage, as do 17 U.S. states, representing almost 40% of the U.S. automotive market. It’s no coincidence that, till now, automakers have prioritized sending new EVs to those jurisdictions, leaving many Canadians with fewer choices. The brand new normal introduced right this moment is important for levelling the enjoying discipline.

“And as Canada’s EV manufacturing capabilities develop, it can additionally be sure that the automobiles we make in Canada shall be obtainable to Canadians who need to purchase them, as a substitute of being all shipped off to states and nations with their very own EV rules in place.

“With transportation emissions chargeable for 1 / 4 of Canada’s carbon air pollution, and private automobiles making up round half of that, EVs are very important for preventing local weather change and defending the well being of Canadians. Greater than 15,300 untimely deaths every year in Canada are linked to air air pollution whereas an evaluation from earlier this yr discovered that the brand new EV rules alone may keep away from as much as 11,000 untimely deaths.

“The federal authorities ought to be applauded for growing these rules in a well timed method. In spite of everything, there isn’t any time to waste. EVs are a win-win-win: for our well being, for our local weather, and for our wallets.”

KEY FACTS

The EV availability normal would require automakers to make an rising proportion of zero-emission automobiles obtainable on the market—20% by 2026, 60% by 2030 and 100% by 2035.
Automakers can earn credit by bringing battery-electric, plug-in hybrid electrical, or hydrogen gasoline cell automobiles into the Canadian market; by buying credit from different automakers that surpassed their very own targets in a given yr; or by investing in public charging infrastructure.
A latest report from Clear Vitality Canada evaluating common EV fashions with their fuel equivalents finds that going electrical can save a typical Canadian driver $3,800 yearly.
- As an example, selecting a Chevrolet Bolt as a substitute of a Toyota Corolla Hatchback would save $33,600 over a 10-year possession interval (that’s together with the upfront buy value and present rebates). Province-specific financial savings might be downloaded right here.
- Equally, the electrical model of the Ford F-150, saves $47,000 over 10 years in comparison with its fuel equal.
- EV drivers can count on half the maintenance- and repair-related prices of an identical fuel automobile, in accordance to Client Stories.
One other examine discovered that requiring automakers to make sure that 100% of all new automobile gross sales are electrical by 2035 would result in a 20% discount in EV costs as a result of automakers must put inexpensive fashions in the marketplace as a substitute of specializing in luxurious fashions.
Transportation makes up 22% of emissions in Canada, and passenger automobiles make up round half of that.
Greater than 15,300 untimely deaths every year in Canada are linked to air air pollution. Canada’s federal EV rules will lead to over $90 billion in well being advantages for Canadians over the following 25 years, together with as much as 11,000 prevented untimely deaths, in keeping with evaluation by the Atmospheric Fund.
Plenty of nations around the globe have launched a model of EV availability necessities, together with China, South Korea, and most not too long ago, the U.Okay.
The value of lithium-ion battery packs has dropped 14% to a file low of $139/kWh.
EV gross sales in Canada proceed to interrupt information, with the newest Statistics Canada outcomes revealing a 12% electrical market share throughout the nation (a 39% improve on the identical quarter final yr). Globally, gross sales have risen 20% year-on-year. In B.C. (a province that has had EV availability rules in place since 2019), EVs made up greater than 23% of recent automotive gross sales.
Within the third quarter of 2023, the common value of a brand new automotive in Canada was $67,817. There are 49 EV fashions at present obtainable below that value level (of the 114 EV fashions at present obtainable within the Canadian Vehicle Affiliation’s EV Purchaser’s Information).
In 2022, the EV provide chain alone attracted 13% of all overseas direct funding into Canada.
A examine of 42 totally different measures key for the world hitting internet zero by 2050 discovered that EV gross sales are the one space transferring on the proper velocity, with an annual development charge of 62%.
A majority of Canadians (63%) appropriately acknowledge that choosing an electrical automobile and a warmth pump is cheaper than selecting fossil-fuel-powered options.