Canadians have been reticent about the price of electric vehicles

Canadians have been reticent about the price of electric vehicles

More than half of Canadians (58%) who plan to buy a vehicle in the next five years would like it to be greener, but 42% will ultimately choose a gas car due to higher prices.

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This is according to a KPMG survey published on Tuesday. Of those who want to buy a new vehicle by 2033, 30% want a hybrid car, 15% want an electric car and 13% want a plug-in hybrid.

The reasons that will make buyers finally choose a petrol-powered vehicle are high prices (26%), fears about autonomy and charging infrastructure (14%) or even lists of waiting and delivery times (8%).

“The survey shows that the recession and significantly higher financing rates have bred a certain pragmatism: the consumer is choosing what is available rather than waiting for the ‘life-changing’ vehicle,” said Damiano Peluso, Partner and National Leader, Automotive , KPMG in Canada.

“The appearance of new electric vehicle models on the market over the next two years is expected to boost sales. However, these depend on the price of the vehicles and the extent to which ongoing concerns about range and charging infrastructure are addressed.

The place of manufacture also influences the purchase decision.

“While our survey shows that most Canadians want to buy an electric vehicle made in North America, many make a purchasing decision based on where the battery and parts are manufactured and the vehicle is assembled,” said Tammy Brown, Partner and National Leader, Industrial Markets KPMG in Canada.

“As a result, the local market may not be able to meet the federal government’s target for zero-emission vehicles. Canadians may therefore be forced to buy more models of imported EVs,” he added.

KPMG in Canada conducted a study of 2001 people in Canada between December 21, 2022 and January 13, 2023.