EV Purchase Consideration Cools for Second Consecutive Year in Canada, J.D. Power Finds
New-Vehicle Shoppers in Canada Now Less Than Half as Likely to Consider an EV Than U.S. Shoppers
TORONTO: 30 May 2024 — Just 11% of new-vehicle shoppers in Canada say they are “very likely” to consider an electric vehicle (EV) for their next purchase, down 3 percentage points from 2023 and less than half of the 24% of U.S. shoppers who say they are “very likely” to consider an EV. That strong sense of resistance is the dominant theme of the J.D. Power 2024 Canada Electric Vehicle Consideration (EVC) Study,SM released today, which finds that perceptions of limited driving distance per charge, high purchase price and lack of charging station availability are the biggest factors limiting EV consideration.
“Auto manufacturers are staking their futures on EVs and investing massive sums in battery manufacturing facilities in Canada, but the reality is that they are still considerably more expensive than comparable gas-powered vehicles and more education is needed to help shoppers feel comfortable making the transition,” said J.D. Ney, director of the automotive practice at J.D. Power Canada. "While tackling the affordability problem is going to take some time, the other big obstacles right now—vehicle range and lack of experience with EVs—can be mitigated by broad consumer education. However, about half of shoppers in Canada still have never been in an EV, which limits purchase consideration.”
Following are key findings of the 2024 study:
- EV consideration declines for second consecutive year: Nearly three-fourths (72%) of vehicle shoppers say they are either “very unlikely” or “somewhat unlikely” to consider an EV for their next vehicle purchase. That is up 5 percentage points from 2023 (67%) and up 18 percentage points from 2022 (53%). In the United States, by contrast, the number of consumers who say they are either “very likely” or “somewhat likely” is 58%.
- Range anxiety, purchase price and charging infrastructure are top roadblocks: Among shoppers who say they will not consider an EV for their next vehicle purchase, limited driving distance per charge is the most frequently cited obstacle to consideration (68%). It is followed by purchase price (61%) and lack of charging station availability (60%).
- Half of consumers have still never experienced an EV: Despite widespread awareness of EVs and growing efforts by manufacturers to make EV test drives available, 52% of vehicle shoppers have never been in an EV. Among those in Canada who have rented, borrowed or test driven an EV, 36% say they are “somewhat likely” or “very likely” to consider purchasing an EV.
- Provinces offering incentives show highest consideration rates: The rate of EV consideration is highest in the province of Quebec, with 40% of shoppers there indicating interest in EV ownership. This is followed by 33% of shoppers in British Columbia who say they have an interest in EV ownership.
The Canada Electric Vehicle Consideration (EVC) Study is an annual industry benchmark for gauging EV shopper consideration. Study content includes overall EV consideration by geography; demographics; vehicle experience and use; lifestyle; and psychographics. It also includes model-level consideration details such as cross-shopping and “why buy” findings and analysis of reasons for EV rejection. This year’s study measured responses from 2,976 consumers and was fielded in March-April 2024.
For more information about the Canada Electric Vehicle Consideration (EVC) Study, visit https://canada.jdpower.com/industries/automotive/canada-electric-vehicle-consideration-evc-study.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behaviour, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business.
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