Automotive News Canada - February 2020 - v2 - 18

* F E B R U A R Y 2 0 20

EV sales get a jolt from
buyers who are driven
by practical reasons as
opposed to pure altruism
By CHARLES JOLICOEUR
MONTREAL CORRESPONDENT

FRANCINE AND ALAIN LOISELLE
weren't looking for an electric vehicle
three years ago when they traded in
their Nissan Murano crossover for a
Leaf EV. Only after a detailed review
of their driving habits did the residents of Sherbrooke, Que., about 140
kilometres east of Montreal, decide
that an EV would suit their lifestyle.
"We bought an electric vehicle
because it made sense," said Alain.
"The range of the Leaf easily allowed
us to get to and back from work, and
we rarely have to drive long distances."
Motivated by practical concerns
other than saving the planet, the couple represents a new kind of EV buyer
who is helping boost sales in Canada,
industry experts say.
EV sales rose 58 per cent to 35,926
in 2019 from 22,679 in 2018, according to figures from global information
company IHS Markit. That represents
about 3.5 per cent of all new-vehicle
sales, up from 2.2 per cent in 2018.

'MORE COMMON BUYERS'
"Early buyers were very strong
environmentalists and people who
wanted to get ahead of the curve in
technology," said Al Cormier, acting CEO of Electric Mobility Canada
(EMC).
"Now, we're seeing more common
buyers, mainly
because of government financial support, more public
awareness of cost
savings - in some
cases, up to $2,000 a
year over the life of
a vehicle - and longer battery range."
A greater selecEMC's Al
tion of vehicles
Cormier:
Buyers are
and an expanding
increasingly
fast-charging inframotivated
structure also are
by the cost
combining to oversavings of EVs come obstacles such
and not just
as range anxiety
environmental
and sticker shock,
concerns.
Cormier said.
FILE PHOTO
"People are
becoming more
comfortable with EVs," he said.
Also at play is the changing perception of a mass-market EV from the
humble Nissan Leaf and Chevrolet
Bolt to new larger offerings with the
tough, bold and sexy attributes of

The electric range
of the Mitsubishi
Outlander PHEV is
35 kilometres, which
is more than enough
for the average
daily commute of
P.E.I. residents, said
Dealer Principal
Tammy Roach.
Meanwhile, supplies
of the Chevrolet Bolt
rose, the driving
range increased,
the interest rate fell
and sales last year
soared. F I L E P H O T O S

adoption of the technology by the masscrossovers, pickups and muscle cars,
When it launched in 2017, the Bolt
es."
Cormier said.
offered an advertised maximum range
He said that EVs made up 15 per
Ford's new battery-electric competof 383 kilometres, but that increased to
cent of the carmaker's sales in 2019.
itor is the 2021 Mustang Mach-E cross417 kilometres for 2020.
"We intend to increase that this
over, which takes its styling cues from
Five years ago, the only EV offeryear, closer to 20 per cent of our mix,"
the iconic pony car. The automaker
ing more than 200 kilometres of range
Dimitris said. "That mix will continalso is joining Rivian, General Motors
was the Tesla Model S, which had a
ue to grow as product
and Tesla in launchbase price of more than $75,000. Today,
offerings continue to
ing electric pickups.
six models offer range exceeding 200
evolve."
Consumer accepkilometres and cost less than $45,000,
Still, he said, mistance has passed
which also makes them eligible for
conceptions about
the tipping point,
iZEV rebates.
electrified vehicles
Cormier said, citing
In just eight months, Canadians
persist.
Quebec and British
have been paid almost half of the
Although hybrid
Columbia, where
$300-million alloted for the three-year
technology has been
EVs make up seven
program, according to a spokesman for
in the market for
per cent and 10 per
Transport Minister Marc Garneau.
The Ford Mustang Mach-E
more than 20 years,
cent, respectively, of represents the trend toward
"Between May 1, 2019, and Jan.
bigger and bolder EV offerings.
Dimitris said, "There
new-vehicle sales.
19, 2020, $134 million in incentives
PHOTO: FORD
is still the need to
have been issued to more than 33,000
'PATHETIC' NUMBERS
educate the public.
Canadians."
Dispelling myths, educating people and
The spokesman also said Garneau
But industry analyst Dennis
making it a viable financial option,
might extend the program to include
DesRosiers said it will take "a lot lonthose three things are helping the
used ZEVs. The federal Liberals
ger" for EVs and hybrids to become
adoption of the technology."
want ZEVs to make up 10 per cent of
commonplace in Canada.
light-duty vehicle sales per year by
"I just think that we have a lot more
ONTARIO EV SALES DOWN
2025, 30 per cent by 2030 and 100 per
development of these products before
cent by 2040.
Rebates remain key to moving EV
you start to see the volumes that some
sales, said Steve Milette, president of
people are expecting. Perhaps by 2030,
ONE CHARGE A WEEK
Nissan Canada.
you'll see electric vehicles get up into
"I think that the message regard"Incentives are a necessary part of
the double-digit market share levels.
ing electrification is starting to reach
... getting consumers to consider getTheir low sales in 2019 of less than
consumers," Bisson said.
ting on with electrification, and we've
36,000 units in a 1.9-million market is
Canadians, on average, drive about
seen what happens when you remove
"pathetic," he said.
30 kilometres a day, which
them completely with the situAt Toyota Canada, Cyril Dimitris,
means an EV need only be
ation in Ontario."
vice-president of sales and marketing,
charged about once a week,
It's the only province sufferis optimistic.
Cormier said.
ing a decline in EV sales, with
"We are seeing more and more
On Prince Edward Island,
a 21-per-cent drop last year
Tammy Roach, dealer princompared with 2018, said IHS
cipal at Charlottetown
Markit.
Mitsubishi, said her team
The province ended rebates
"works very hard to inform
of up to $14,000 in July 2018,
clients about EVs. Most are
shortly after the Conservative
Nissan
surprised to learn that you
Party took office from the
Quebec and British Columbia - the only two
Canada's
provinces offering provincial rebates - are
can plug an Outlander PHEV
Liberal government.
mostly responsible for overall battery-electric
Steve Milette:
into any outlet and charge the
At
General
Motors
Canada,
adoption in Canada. Quebecers are eligible
Consumers still battery."
product spokesman Philippefor up to $13,000 off their new electrified
The Outlander PHEV,
Andre Bisson said more afford- need incentives
vehicle, while buyers in B.C. receive up
before they'll
to $8,000. These values include rebates
which pairs a traditional
able financing rates as well as
consider an EV. combustion engine with an
from the federal iZEV program, launched
the federal iZEV rebate proin April, which offers up to $5,000 toward
FILE PHOTO
electric motor, can go 35 kilogram (for zero-emission vehizero-emission vehicles that meet certain
metres on battery power only,
cles) have helped boost Bolt
criteria. Excluding Ontario, all other
provinces and territories combined for 1,400
Roach said.
sales, which rose 55.5 per cent in 2019
new BEV registrations in 2019, according
"Many Outlander PHEV owners
over 2018.
to information provider IHS Markit. Large
drive less than 25 kilometres to get to
"The interest rate offered on the
percentage gains for these jurisdictions are
work, which means they don't need
Bolt decreased from 3.9 per cent to 1.9
due to their near-zero 2018 numbers.
fuel during the week. The cost savings
per cent in September," Bisson said.
are significant." - ANC
"That combined with the fact that
N.B. N.S. P.E.I. Nfld. N.W.T. Yukon Nunavut
N/A
+252% +169% +211% +317% 0%
*-
for the first time in three years, we
- With files from John Irwin
now have enough Bolt units on dealer
A U T O M O T I V E N E W S C A N A D A / Source: IHS Markit
and Greg Layson
lots to meet demand."

BEVs: Minuscule numbers, big percentage gains

Province by province, new BEV registrations in 2019 vs. 2018
Provincial
rebates
ended
in 2018

15,000

10,000

2018

2019

5,000

B.C. Alta. Sask. Man. Ont. Que.
+143% +77 +123% +100% -21% +81%

* Yukon had two new registrations in 2019, up from zero
in 2018, therefore the percentage is not calculable.

Automotive News Canada - February 2020 - v2

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