How much Canada is outpacing the U.S. in EVs

Recent data indicates that Canada is outpacing the United States in the adoption of battery electric vehicles (BEVs). This shift is especially apparent in the early months of 2024, driven by provincial incentives and national policies that have led to a significant increase in BEV registrations in Canada.

According to Stephanie Brinley, associate director of AutoIntelligence at S&P Global Mobility, similar trends have been observed in Europe and China, where BEV adoption outstrips that in the U.S. Brinley highlights the role of provincial incentives in Quebec and British Columbia in accelerating Canada’s shift towards electric vehicles, in contrast to the U.S., where state-level incentives have not been as impactful.

From January to April 2024, Canada experienced a 57% rise in BEV registrations compared to the same period in 2023. Plug-in hybrid electric vehicles (PHEVs) also saw a significant increase, with registrations up by 75%. Meanwhile, the U.S. recorded an increase of 25,000 in BEV registrations during the first four months of 2024, a decrease from the previous year’s growth.

Canada’s Incentive for Zero-Emission Vehicles (iZEV) program offers a rebate of up to CA$5,000 for eligible EVs, complemented by additional provincial incentives. For example, Quebec offers up to CA$7,000 and British Columbia up to CA$4,000, based on the buyer’s income and vehicle price. However, Ontario relies solely on the national program without additional incentives.

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Despite the robust incentives, changes are on the horizon. Quebec plans to gradually phase out its rebates, aiming to eliminate them entirely by 2027. British Columbia is also adjusting its rebate program, which will result in 75% of EVs no longer qualifying for rebates.

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The effectiveness of these incentives is clear, with Quebec accounting for over half of Canadian BEV registrations through April 2024 and British Columbia contributing a significant share. In contrast, Ontario, which does not offer extra incentives, lags behind.

In the U.S., where incentives vary greatly by state, California leads with 34% of the nation’s BEV registrations from January to April 2024 due to its strong incentive programs and early adoption of strict vehicle emission rules. Other states like Florida and Texas have lower BEV registration percentages.

Brinley notes that while 15 states in the U.S. offer some level of incentives on top of federal benefits, the distribution of BEVs still tends to favor states with higher overall vehicle registrations.

This nuanced landscape of vehicle electrification highlights the varying impacts of policy incentives in promoting the adoption of environmentally friendly vehicle technologies.