The relative ownership costs of zero-emission electric vehicles (ZEV) would need to fall by one-third to meet the federal government’s 2030 EV sales target, according to a new report from the Parliamentary Budget Officer (PBO).
The federal government announced last year that auto manufacturers would be required to ensure the market share of ZEVs sits at 20 percent in 2026, 60 percent in 2030, and 100 percent by 2035.
According to the PBO report, meeting those targets would require the relative ownership cost of ZEVs to fall by 9 percent by 2027, 17 percent by 2028, 20 percent by 2029, and 31 percent by 2030.
To meet the government’s regulations, automakers will be issued credits by the Canadian Environmental Protection Act for the EVs they sell. Manufacturers that sell more EVs than needed to meet each year’s target will be able to bank those credits to meet future targets, or sell them to companies that didn’t meet their targets. Manufacturers can also cover up to 10 percent of the credits they need each year by investing in public fast-charging stations.
The PBO report said that meeting the mandates could require a changing of consumer preferences, new policy measures, price adjustments by auto manufacturers, or “unexpected technology advances.” Additionally, the report said achieving the federal targets would result in the market for L2 and L3 charging ports increasing by 33,900 and 4,700 units, respectively, by 2023.
The report found 75 percent of Canadians believed the vehicles are “too expensive,” 59 percent said they perform poorly in cold weather, and 56 percent said they do not travel far enough with a full charge.
The Canadian government has made significant investments in EVs, spending more than $46 billion for 13 electric vehicle, battery, and battery component manufacturing projects since 2020, including subsidies for factories in cities like St. Thomas and Windsor, Ont.
