Interest in electric vehicles rebounds in Canada, but experts say purchases may lag

CTV’s Spencer Turcotte takes a look at if growing interest in electric vehicles is actually translating into more sales.

New data suggests Canadian interest in electric vehicles is rising again for the first time since 2022, but industry observers say curiosity doesn’t always translate into buyers.

AutoTrader says nearly half of Canadians who don’t currently own an electric vehicle say they’re open to purchasing one next — a notable increase from last year.

As drivers continue to feel the impact of rising fuel costs, more are considering alternatives.

“Now we are sitting at 49 per cent, meaning almost half of the Canadians that we surveyed stated they might be interested in purchasing an EV as their next vehicle,” said Baris Akyurek, vice president of insights and intelligence at AutoTrader.

The automotive marketplace says interest in electric vehicles is rebounding, in part, by improving affordability, government incentives and volatile gas prices.

AutoTrader reports new electric vehicle prices have dropped six per cent year over year to an average of $61,951, while used EV prices fell 2.1 per cent to $45,245, narrowing the affordability gap.

Akyurek said recent federal announcements are also playing a role.

“Let’s think about what the federal government announced in the beginning of February,” he said, referencing a new five-year EV and hybrid rebate program, along with commitments to expand charging infrastructure.

More than half of prospective buyers — 54 per cent — say they could not afford an electric vehicle without rebates, while 65 per cent say incentives directly influence their decision.

AutoTrader also saw a 33 per cent surge in EV search activity in March, coinciding with spikes in fuel prices.

“As we all know, there’s a situation going on between Iran and the United States since February 28th,” Akyurek added, noting global instability can quickly impact consumer behaviour at the pump.

Despite growing interest, some experts say there’s still hesitation among buyers.

Dillon Meyer, business manager at Quality Car Sales in Kitchener, says there’s a big difference between survey responses and actual purchasing decisions.

“If they start weighing their options for pricing of an electric car, installing a charger at their house, the range for an electric car and then of course the resale, I’d like to see those survey results because they would probably be a lot different,” Meyer said.

He added that fully electric vehicles may make more sense in urban areas with strong charging infrastructure.

“The hybrid or plug-in hybrid vehicle definitely bridges the gap between gasoline and full electric,” Meyer said. “Southwestern Ontario may have some pockets where an electric car makes more sense, like downtown Toronto, but the vast amount of Ontario’s population would prefer to drive a hybrid or a plug-in hybrid.”

Still, AutoTrader says interest appears to be turning into action, with new EV sales up 38 per cent year over year and used EV sales rising 13.7 per cent.

While the Canadian EV market is showing early signs of recovery, analysts say broader adoption will depend on continued improvements in affordability, infrastructure and consumer confidence.