Driving Insights by CARFAX Canada

EVs Are Gaining Traction – Don’t Miss Out on Sales

Written by CARFAX Canada | Tue, Dec 3, 2024

Electric vehicle adoption is showing no signs of slowing down. Canadians are becoming more interested in getting behind of the wheel of EVs, but for some, there’s still some hesitancy about committing to Electric. Do you know how to energize your customers on EVs?

What do the sales numbers say?

In Q2 2024 there was a 38% increase in zero-emission vehicle (ZEV) registrations compared to the same time last year, with the majority being Battery Electric Vehicles (BEVs). According to Statistics Canada, ZEVs now account for 13% of new vehicles.

Looking at sales using a provincial lens, Quebec continues to lead the country with the highest number of ZEV registrations in Q2 per capita, followed closely by British Columbia. Infrastructure, generous rebates, and more affordable electricity have helped Quebec make up half of all ZEV registrations so far in 2024. Ontario reported 22% of registrations but continues to experience somewhat slower growth along with Saskatchewan, Manitoba, Alberta and the Maritime provinces.

 

Future demand

A recent CARFAX Canada survey found that 33% of car buyers are most interested in hybrid-electric vehicles (HEVs) for their next purchase, with internal combustion engines (31%) following closely behind. BEVs and Plug-in Hybrid Electric Vehicles (PHEVs) round things out at 18% and 16%, respectively.

While BEVs currently lead the sales charge, these survey results suggest future demand from internal combustion engine switchers may tilt more towards PHEVs and HEVs as the market expands.

 

Sparking the deal

So, how can you charge up your EV sales pitch?

Here are the top responses as to what buyers told us were fueling their interest:

And here’s what’s still giving them a bit of a shock:

Cost savings and convenience are doing the heavy lifting. The Canadian household savings rate jumped up to 7.2 in Q2 2024 from 4.9 at the same time last year. Worried buyers are saving more and actively looking for ways to shift their lifestyle to reduce discretionary spending.

 

Closing the sale

Lead with the numbers. Show them the money! Talk about how great it is to leave the gas station off the errand list. As well, highlight government incentives early on. Fewer buyers told us tax incentives/rebates were a motivator; this could be pointing to a lack of awareness about how much is being offered.

Focusing on the financial details may sound a bit boring but future EV buyers aren’t putting much stock in less practical considerations like the EV’s brand or its look and feel.

As for doing away with common EV concerns, you can put higher price tags in the context of future fuel savings, maintenance costs and rebates. The latest research is also showing that battery life continues to improve, but the odds are that your customer won’t own their car long enough to need to replace the battery in the first place. Finally, range anxiety should lessen as more infrastructure rolls out, but until then PHEVS and HEVs provide the best of both worlds.

Stick with the practical and financial benefits of EVs and you’ll give yourself a better chance of getting a customer in the driver’s seat.