Charging Infra Advancements Likely to Close EV Sales Gap in Canada: Report

Canadian electric vehicle (EV) market is likely to experience a possible stagnation in 2020 on the back of lack of support from the provincial governments, said Frost & Sullivan (F&S), a leading business consulting firm in its Strategic Analysis of the Canadian EV Market.

However, federal incentives are expected to give an impetus to the market, F&S suggested in its report.

It also added that, the country will continue to prefer hybrid EVs over plug-in electric vehicles (PEVs).

Despite this, the gap in sales is reducing and will continue to do so as charging infrastructure improves in 2020 and beyond.

Explaining more on the report findings, Ishaan Kolse, Automotive & Transportation Research Associate at Frost & Sullivan, said that “as there exists a notable lack of non-cash incentives in current provincial EV-centric policies and schemes, provincial governments, apart from the Big 3—Quebec, Ontario, British Columbia—need to introduce such incentives to push EV adoption.”

“Additionally, charging station networks must be extended beyond the southern part of Canada and penetrate the entire country to address range anxiety,” Kolse suggested.

Kolse further added that, “as reflected by its 100.7 percent year-on-year growth, the xEV market is demonstrating substantial demand. Further, this is the time to invest in the supply chain to lower cost of ownership of xEVs (versus internal combustion engine vehicles) and increase rate of adoption for potential customers.”

The researcg agency further suggested that if the Canadian government’s ambitious sales and emission targets are reflected in the policies it establishes, the growth of EV could skyrocket in the near future, unlocking immense growth opportunities for market participants.

In its recommendations, the Frost & Sullivan suggested that, the original equipment manufacturers (OEMs) should introduce xEV pick-ups before the market reaches saturation.

Secondly, charging station infrastructure must be rapidly extended across the country to address range anxiety.

Additionally, large OEMs and the government can leverage the availability and expertise of the local EV makers.

Lastly, the introduction of quality-of-life and utility-based incentives can push the demand for EVs in the country.