Canadian Legislative Issues

The federal government recently announced a modest yet important investment in recharging infrastructure for electric vehicles (EVs) on a 3,000 km stretch of highway from Manitoba to Ontario. The $17 million program will aim to install 34 stage three charging stations along that stretch of the national highway, in roughly 100km increments. Coupled with the increased range of today’s EVs, this should go a long way to alleviating the so-called "range anxiety" of potential battery-powered vehicle customers, who have historically feared running out of juice before reaching their destination.

This is part of a general push from governments towards electrification of the fleet, as battery technology improves and range anxiety eases. Governments around the world are looking for ways to enhance the proliferation of EVs on roads, as long-term climate commitments start to take shape. For example, the United Kingdom just recently announced a ban on the sale of diesel or gasoline fueled vehicles by 2040. Automakers have also responded to the growing trend, with Volvo recently announcing that it will only produce hybrid and electric vehicles after 2020. The Government of Canada is attempting to keep pace with these ongoing developments and are continuously attempting to convince consumers to purchase electric vehicles. They are also supported by provincial governments rebate programs, such as the one in Ontario that gives consumers up to $14,000 back for the purchase of an electric vehicle.

Despite these generous programs from governments in Canada, Canadians are still slow in adopting electric vehicles. In 2016 for example, only 11,580 electric vehicles were sold, which amount to 0.59 percent of the total car market. "Range anxiety" and the larger cost of EVs compared to traditional vehicles continue to keep consumers skeptical. However, while this is true presently, all signs point towards EVs continuing to increase their share of the total car market year after year, especially when vehicle manufacturers like Tesla continue to adopt new technologies and lower the cost of their vehicles. The Canadian Government and provincial governments are preparing themselves for this eventual shift in consumer behavior. As vehicle manufacturers and governments around the world are assuming, that shift is coming sooner than later.