Clean Energy Canada | New EV availability standard will reduce wait times and help Canadians unlock cost savings
December 19, 2023

OTTAWA — Joanna Kyriazis, director of public affairs at Clean Energy Canada, made the following statement in response to the federal government’s final electric vehicle availability standard:

“With record numbers of Canadians choosing an EV over a gas car in recent months, it’s clear that they want electric vehicles. And today’s new regulations, which will require automakers to make an increasing percentage of EVs available for sale en route to 100% by 2035, will make it a lot easier to get behind the wheel.

“Canadians currently drive the least fuel-efficient cars in the world—and they’re paying the price at the gas pump. By making EVs more available, the federal government is ensuring that more Canadians will be able to access thousands in savings.

“Going electric can save between $30,000 and $50,000 over a ten-year ownership period, even taking into account the purchase cost, according to a new report. In fact, reductions in battery costs as well as available rebates mean that some EVs are already cheaper to buy than fossil-fuelled equivalents, allowing drivers to start saving the moment they drive off the lot. What’s more, EV availability regulations have been shown to cut EV sticker prices even further by requiring automakers to put affordable models on the market instead of focusing on luxury models. 

“It’s a tried and tested policy. Both B.C. and Quebec, which lead Canada in EV sales, have their own versions of this policy, as do 17 U.S. states, representing nearly 40% of the U.S. car market. It’s no coincidence that, until now, automakers have prioritized sending new EVs to these jurisdictions, leaving many Canadians with fewer options. The new standard announced today is essential for levelling the playing field. 

“And as Canada’s EV manufacturing capabilities grow, it will also ensure that the cars we make in Canada will be available to Canadians who want to buy them, instead of being all shipped off to states and countries with their own EV regulations in place.

“With transportation emissions responsible for a quarter of Canada’s carbon pollution, and personal vehicles making up around half of that, EVs are vital for fighting climate change and protecting the health of Canadians. More than 15,300 premature deaths each year in Canada are linked to air pollution while an assessment from earlier this year found that the new EV regulations alone could avoid up to 11,000 premature deaths.

“The federal government should be applauded for developing these regulations in a timely manner. After all, there is no time to waste. EVs are a win-win-win: for our health, for our climate, and for our wallets.”

KEY FACTS

  • The EV availability standard will require automakers to make an increasing percentage of zero-emission vehicles available for sale—20% by 2026, 60% by 2030 and 100% by 2035. 
  • Automakers can earn credits by bringing battery-electric, plug-in hybrid electric, or hydrogen fuel cell vehicles into the Canadian market; by purchasing credits from other automakers that surpassed their own targets in a given year; or by investing in public charging infrastructure. 
  • A recent report from Clean Energy Canada comparing popular EV models with their gas equivalents finds that going electric can save a typical Canadian driver $3,800 annually.

    • For instance, choosing a Chevrolet Bolt instead of a Toyota Corolla Hatchback would save $33,600 over a 10-year ownership period (that’s including the upfront purchase cost and current rebates). Province-specific savings can be downloaded here.
    • Similarly, the electric version of the Ford F-150, saves $47,000 over 10 years compared to its gas equivalent. 
    • EV drivers can expect half the maintenance- and repair-related costs of a similar gas vehicle, according to Consumer Reports. 

  • Another study found that requiring automakers to ensure that 100% of all new vehicle sales are electric by 2035 would lead to a 20% reduction in EV prices because automakers would have to put affordable models on the market instead of focusing on luxury models.
  • Transportation makes up 22% of emissions in Canada, and passenger vehicles make up around half of that.
  • More than 15,300 premature deaths each year in Canada are linked to air pollution. Canada’s federal EV regulations will result in over $90 billion in health benefits for Canadians over the next 25 years, including up to 11,000 avoided premature deaths, according to analysis by the Atmospheric Fund.
  • A number of countries around the world have introduced a version of EV availability requirements, including China, South Korea, and most recently, the U.K.
  • The price of lithium-ion battery packs has dropped 14% to a record low of $139/kWh. 
  • EV sales in Canada continue to break records, with the latest Statistics Canada results revealing a 12% electric market share across the country (a 39% increase on the same quarter last year). Globally, sales have risen 20% year-on-year. In B.C. (a province that has had EV availability regulations in place since 2019), EVs made up more than 23% of new car sales.
  • In the third quarter of 2023, the average price of a new car in Canada was $67,817. There are 49 EV models currently available under that price point (of the 114 EV models currently available in the Canadian Automobile Association’s EV Buyer’s Guide). 
  • In 2022, the EV supply chain alone attracted 13% of all foreign direct investment into Canada.
  • A study of 42 different measures key for the world hitting net zero by 2050 found that EV sales are the only area moving at the right speed, with an annual growth rate of 62%. 
  • A majority of Canadians (63%) correctly recognize that opting for an electric vehicle and a heat pump is cheaper than choosing fossil-fuel-powered alternatives. 

RESOURCES

Report | A Clean Bill

Media Brief | Countering common myths about electric vehicles

Poll | Six in ten Canadians believe an electric vehicle will ultimately cost them less than a gas car

Video | How clean energy makes life cheaper for Canadians

Video | A Zero Emission Vehicle Mandate for Canada