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EV Options Are Improving In Canada As Demand Remains Soft

The electric vehicle market has been a “chicken or the egg” situation for automakers all around the world. Without EV’s on the market, there will be no demand. But with the number of EV’s on the market increasing, demand is still very soft. In Canada, the options for consumers who are interested in an electric vehicle are improving, but it remains unclear how many Canadians are interested in buying them.

Analysts say that around 400 full electric models would hit the market globally by 2025, including 113 this year alone. The analysts say that government policies are crucial to push companies to build and sell electric vehicles. Without incentives, many fear automakers won’t transition from traditional combustion vehicles.


One key problem, according to James Carter, from Vision Mobility is that automakers are making “so much money” off trucks, pickups, and SUVs today that are powered by internal combustion engines that they have a hard time getting off the “drug.” Carter says some companies are reluctant to move to electrification while other automakers, such as Kia and Hyundai, are rolling out electrified vehicles. The catch for automakers like Kia and Hyundai is that they aren’t building enough EVs to meet demand because profitability is a challenge. While not mentioned, another challenge is getting enough battery packs to build electric vehicles.

Ford is limiting its Mustang Mach-E to 50,000 units in its first year, and the reason for that limitation is battery pack availability. Carter admits that profitability is a challenge for electric vehicles today. He notes that the conundrum for automakers is that they risk losing ground on new technologies if they wait too long, but they also have to make enough profit to justify the billions of dollars in investments to move to electrified vehicles.

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Source: Automotive News Canada

Shane is a car guy with a fondness for Mustangs and off-roading.

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  1. Tom

    I love the picture of the young lady standing by her Mach-E holding the charging cord, I assume she’ll be happy standing there for 30-40 minutes before she can get back on the road. I still predict this model will be a market flop. Take the government out of the equation and what little :demand” does exist would drop to zero. Hackett spends billions on this (and AV’s) and has no money left to compete in the sedan business that still represents 25% of the vehicle market. Good decisions? Just look at the stock price; and that’s with a $0.60/ share dividend!

    1. Stephen Bieda

      FACT CHECK: 1) Actually what is most convenient about an EV is you just plug it in and walk away to do something more important. It takes 2 seconds. You don’t have to stand there and huff carcinogens for 3 mins in the freezing cold.

      2) The Ford Mach E is not eligible for incentives as it is over the price threshold it has however sold out already in various markets. So demand is clearly there without incentives not just on the Mach E but on many EVs.


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