High Oil Prices Are Driving Canadians To Switch To EVs

As gas prices continue to rise, more Canadians are considering switching to electric vehicles (EVs) as a reasonable alternative to gasoline-powered cars.

According to the Canadian Automobile Association (CAA), the average gas price in Canada on Friday was $1.70 a litre, up 38% from a year ago. The price of a litre has topped $2 in some parts of the country.

According to a KPMG survey, 60% of Canadians said that rising gas prices and oil supply concerns have persuaded them to switch to electric vehicles, and 51% of respondents stated that they won’t buy a gas-powered vehicle ever again.

People who drive electric cars can protect their wallets from price changes caused by geopolitical events, like the war in Ukraine, says Joanna Kyriazis, the program manager of clean transportation for Clean Energy Canada at Simon Fraser University. 

“Owning an EV means you never have to drive by the sign outside the gas station and worry about what price you might see,” said Kyriazis in an interview. “Fully charging a 413-kilometre range 2021 Chevy Bolt at home would cost $5 to $13, depending on which province you live in.”

However, the price of EVs is not exactly affordable and can act as a barrier. For a new electric car in Canada, prices go between $32,000 and $160,000 plus about $300 to $700 for an at-home charging station.

Therefore, Kyriazis predicts a drop in the price of electric cars.  Strategic research by BloombergNEF predicts that the cost of electric vehicle (EV) batteries would decline by 2021 due to a variety of factors, including an increase in manufacturing capacity, rising demands from EV producers, and improved battery cell and pack designs.

Kyriazis explains that despite the higher initial expenses, EVs may be more cost-effective in the long term compared to conventional vehicles. “It doesn’t take very long, sometimes just a year or two, before fuel savings make your EV cheaper than your gas car,” she said.

Automakers are starting to turn to Canada to implement their EV strategies as consumer interest in these vehicles increases. Over the course of the next six years, the Alliston, Ontario, facility of Honda Canada Inc. will be upgraded to produce electric hybrid cars. General Motors and Posco Chemical revealed earlier this month that they had signed a contract to develop a plant in Becancour, Quebec, to create battery materials for electric vehicles. Ingersoll, Ontario, will become the first full-scale electric vehicle manufacturing plant in Canada later this year.

Original source material for this article taken from here