Survey shows 'softened' interest in electric vehicles since last year

Despite a recent survey, which shows fewer shoppers in Canada are considering electric vehicles (EVs) for their next car purchase, auto analysts said interest in EVs should rebound as Canada continues its push toward electrification.

The survey by AutoTrader, which gathered data from more than 1,300 people, shows interest in electric vehicles has "softened" since last year.

According to the online automotive marketplace, 56 per cent are considering an electric vehicle as their next car — down from 68 per cent when the same survey was administered in 2022.

Scott Ohler, general manager at Rose City Ford, estimates the percentage of customers who come to the dealership looking for an electric vehicle "in the single digits."

"It's still somewhat of a niche product. Certainly, I think the pricing does have a little bit to do with that," said Ohler, referencing two electric vehicles on his lot which are in the price range of $60,000 and $70,000.

AutoTrader attributed the drop-off in EV interest to vehicle pricing, inflation, and rising interest rates, according to its survey findings, adding EV searches on its online marketplace dropped 32 per cent in March 2023, compared to the same time last year.

According to Olher, range anxiety continues to be another reason why EVs are not yet widely adopted — and the auto industry is still in the process of educating people about electrification.

"There are a lot of people right now who may be interested in an EV. They indicate their intention to purchase an EV at some point in the future, but they're just not sure if it's for them right now," he said.

Still, auto analysts said the survey findings should not be a cause for concern for Windsor — a city making a strong push toward electrification.

"This isn't something we can escape. Electric vehicles are coming. Governments are forcing us to buy them and forcing the automakers to make them," said Automotive News Canada editor Greg Layson.

According to Layson, interest in electric vehicles tends to correlate with the price of fuel. He said both are expected to rise over the next few months.

Another factor behind the drop-off over this "small window" of time, Layson said, is that Ontario, which is the largest retail market for electric vehicles when comparing provinces, lacks an electric vehicle rebate.

"Quebec and B.C. have large electric vehicle rebates. So there is more willingness to spend on an EV in those two provinces than there are than there is in Ontario," said Layson. "When you have a market this big not buying up EVs or not considering it, that'll skew that survey result as well."

But with the combination of a federal government mandate which will require every Canadian-sold passenger vehicle to be electric by 2035, along with billions of dollars being invested toward electrification, Layson said consumer preferences will be a moot point in the foreseeable future.

"We're all going electric: countries, governments, mandates, legislation, however you want to put it. Countries around the world are pushing electric vehicles, and the automakers are going to have to fall in line," said Layson.

Ford Motor Co. announced this week it will spend $1.8 billion to retool its Oakville assembly plant to accommodate electric vehicle production. That's expected to happen in 2024 which is the same year when the NextStar Energy battery plant is expected to begin production in Windsor, Ont.