Most Canadians Are Still Afraid of EVs, KMPG Survey Says

Canadians are watching the big electric transition with great caution. While the progress has been stratospheric in the last years, there are still big question marks regarding range, reliability and performance of electric cars, especially in the winter. The industry is still having a hard time convincing Canadians. But other financial and political concerns have recently been added to the mix.

New Car Buyers Are Still Leaning Towards Gas-Powered Ones

According to a recent survey conducted by KPMG, Canadians need new cars but are still standing on the sidelines. In fact, six in ten Canadians plan to buy a new vehicle within the next five years in replacement of their current vehicle, and 42% of those will buy in the next two years. All respondents would prefer a greener alternative to gas-powered vehicles, but most will end up buying just that. There is a variety of factors, namely range anxiety and charging reliability concerns, but also the rising financing costs and delays in delivery.

• Also: KPMG Survey: Canadians Want EVs But Have Charging Anxiety
• Also: Used Car Prices to Drop in Late 2022, KPMG Predicts

Fifty-eight per cent of participants who plan to buy a new vehicle by 2033 say they want a greener vehicle, while the remaining 42 per cent prefer a gas-powered internal combustion engine (ICE) powertrain.

"It's not that EVs have lost their appeal but rather that lack of inventory and long waiting lists over the past couple of years are giving consumers reasons to pause," says Damiano Peluso, Partner and National Automotive Industry Leader, KPMG in Canada. "And now with expectations of a recession and sharply higher financing rates, our poll research shows consumer sentiment has shifted to pragmatism over 'the machine of a dream'.

The market is clearly shifting, too. Trusted brands like Toyota and Honda have yet to come up with a competitive, fully electric range of vehicles. That might influence buyers to go look elsewhere and, according to the study, only 54 per cent of respondents intend to buy an electric car that's the same brand as the current car they own.

Another interesting takeaway from this study is hat 67% of poll respondents say they would buy directly from the manufacturer and bypass the dealership.

Canadians Want Smaller and Cheaper EVs, But Want Big Expensive Range

There are also a few contradictions in the study (as there always is). For example, it underlines that 71% of Canadians believe brands should build smaller EVs given limited supplies of raw materials, and the same percentage say EVs need to be financially accessible to everyone, which means smaller vehicles with smaller battery packs.

However, only 55% say that they would actually buy a small EV with a small battery pack with less range, because they judge that the fast-charging infrastructure network isn’t quite there yet. Finally, 80% say they won't consider any vehicle that offers less than 400 kilometres or range.

Needless to say, there’s still a lot of work to be done before 2035, were all new car sales will have to be electric in Canada.