Unless policies or technologies change, the ownership cost of electric vehicles (EVs) needs to decrease by 31 per cent if Canada to wants to reach its sales target of 60 per cent EVs by 2030, according to a new report released Thursday by Parliamentary Budget Officer Yves Giroux.
Last December, the federal government unveiled its Electric Vehicle Availability Standard that outlined zero-emission vehicle sales targets for automakers. The standard requires all new light-duty sales in Canada to be electric or plug-in hybrid by 2035. There are also interim targets of at least 20 per cent of all sales being EVs by 2026 and 60 per cent by 2030.
Those federal government targets come as growth forecasts for auto companies have plateaued and concerns about charging infrastructure persist. The price of EVs has also pushed the cars out of reach for many consumers. According to the Canadian Black Book, the average cost of an EV was $73,000 in 2023.
I was going to agree with you, but I think after reading your points I actually feel the complete opposite. I think if there’s a role for heavy taxation to play it should be on new ICE vehicles, as opposed to on the gas itself. We’re talking about new vehicles here, there are millions of perfectly good used vehicles out there that would fill all the roles you’re talking about. Increasing gas taxes ends up punishing the people who can least afford it. Like the farmers who have to have to haul their equipment hundreds of kilometers between farms, the condo dwellers who aren’t allowed to charge at home, and the renters who can’t afford to install an EV charger, let alone buy a new car. The tax should also go towards making EVs more affordable at the low end (it would be nice to subsidize used EVs but I can see many ways to abuse something like that).
We need to get the percentage of new EVs up today so that tomorrow’s used market is where we want it to be. We can only do that by encouraging those who can afford a new car to pick an EV, not by punishing those who can’t afford a choice.