Consumers continue to show interest in vehicle electrification, while to no surprise, buying decisions are being heavily impacted by ongoing affordability pressures – with many new vehicle buyers opting for hybrids and plug-in-hybrids over fully electric vehicles.
A new survey released by the Vancouver International Auto Show (VIAS) found that 56 per cent of 200 prospective buyers and auto show visitors would consider a gas vehicle, 49 per cent a conventional hybrid, and 47 per cent would think about buying a plug-in hybrid. Interest in EVs remains but is conditional due to cost and charging concerns.
The preference to purchase a gas vehicle or hybrid is not surprising, as consumers are navigating an increasingly complex and uncertain market. A lot of buyers want cars that are better for the environment and hybrids, and plug-in hybrids are meeting people where they’re at – while fully electric vehicles are unattainable for many.
Further to this point, 35 per cent of respondents said gasoline is most likely to be the single powertrain for their next car, while 21 per cent chose hybrid, and 19 per cent chose plug-in hybrid – with fully electric vehicles trailing behind.
More than half of respondents said high purchase prices are the primary barrier to considering battery electric vehicles, another 32 per cent are concerned about their driving range, and 24 per cent cited limited charging access. Couple these hesitations with the removal of federal and provincial EV rebates, which caused 60 per cent of respondents to have reduced interest in EVs – including 24 per cent whose interests significantly declined.
It’s important to note that the federal government has changed lanes from the ZEV mandate system in favour of emissions-based targets. They also reintroduced the EVAP rebate program with up to $5,000 for EVs below $50,000. The New Cars Dealership Association is urging the provincial government to join the federal government’s lane by similarly amending the BC ZEV Act.
In BC, the provincial New Vehicle Luxury Tax threshold of $55,000 remains and continues to contribute to the affordability problem. The average cost of a new vehicle is more than $66,000, an increase due largely to technology changes and advancements that make present day vehicles safer to drive than ever before – advancements that aren’t labeled as luxurious. The tax is no longer just for luxury vehicles, as the average BC family – purchasing a gasoline or electric vehicle – would fall into that threshold for purchasing an average vehicle for their everyday tasks.
If governments, provincial and federal, are serious about reducing emissions, they need to align policy frameworks, focus on affordability, charging infrastructure – all of which contribute to consumer choice, which would be the driving force for EV adoption.
The current market has a broad range of vehicle types, and BC’s New Car Dealers are committed to reflecting that market to prospective buyers – a market with all sorts of options.
The VIAS is less than two weeks away and runs from March 25 to March 29 at the Vancouver Convention Centre West. For more information on Western Canada’s premier auto experience, or to purchase tickets, visit vancouverinternationalautoshow.com/
Blair Qualey is President and CEO of the New Car Dealers Association of BC. He can be reached at [email protected]
