In the latest report from S&P Global Mobility, detailing Canadian Automotive Insights for Q1 2023, Canada saw a national zero emission vehicle (ZEV) new light vehicle adoption rate of 9.1% for registrations, led by Tesla.
Tesla continues to dominate the Battery Electric Vehicle (BEV) market in Canada despite experiencing a slowdown in registrations in Q1 2023, according to the report. Historically, Tesla has accounted for a significant 40% to 50% of the total volume within the Zero Emissions Vehicle (ZEV) segment.
However, Q1 2023 saw a 30% decrease in Tesla registrations, resulting in a drop of over 10 percentage points in market share. This marks Tesla’s lowest quarterly share since Q3 2021.
Despite this decline, the broader adoption of BEVs across Canada is on the rise, contributing significantly to the 9.1% ZEV adoption rate for new light vehicle registrations in 2023. A notable 19.1% increase in BEV volume was recorded compared to Q1 2022, and BEVs now represent 6.9% of new light vehicle registrations nationally.
Provincially, British Columbia leads the charge with a 15.9% BEV adoption rate, contributing to its rank as the province with the highest rate of electrification adoption. In fact, BEVs account for 25.9% of all new ZEV registrations in British Columbia, thanks to the provincial EV rebate of up to $5,000 CAD.
Quebec is another front-runner, accounting for an impressive 38.5% of overall ZEV volume for 2023 despite having a slightly lower BEV adoption rate of 14.4%. The province also has its own EV rebate of up to $7,000 CAD.
In contrast, Alberta lags behind in BEV adoption. Despite accounting for 11.2% of the light vehicle market, BEVs represent only 4% of the total volume in the province. This stark difference underlines a significant challenge in promoting wider BEV adoption, particularly in provinces with a strong preference for light pickup trucks. Until BEV pickups become more mainstream and accessible, it’s anticipated that regions like Alberta will continue to face hurdles in the path to wider BEV adoption.
On the bright side, however, the report forecasts a continued increase in ZEV adoption. According to the 2023 S&P Global Mobility Sales-based Powertrain forecast, the market share of ZEVs in Canada is projected to reach 16% in 2024 with approximately 300K ZEVs on the road.
The report further notes a promising development in 2024, with 41 new BEV models scheduled for launch in the Canadian market. This rollout targets various vehicle segments, including the light-duty pickup truck segment, expected to further bolster the adoption of electric vehicles in Canada.
It’s no surprise Tesla is leading the Canadian EV market, as it’s the only automobile manufacturer able to pump out vehicles for consumers for immediate purchase. Alongside recent price drops to allow the Model Y and Model 3 to qualify for federal iZEV rebates, plus provincial rebates, expect even more sales in coming quarters to come.
