Canada Sets Ambitious Electric Vehicle Sales Targets

A recent report from Canada's Parliamentary Budget Officer (PBO) indicates that ownership costs for electric vehicles (EVs) must decrease by at least 31% to meet the government's target of 60% EV sales by 2030. Currently, EVs represent about 11% of new vehicle registrations, falling short of the mandated goals set by the Liberal government, which aims for 20% by 2026 and 60% by 2030. The PBO highlights that while EVs are cheaper to operate than gas-powered vehicles, the initial purchase price remains a significant barrier for consumers. The report suggests that adjustments in market conditions are necessary to encourage the transition to EVs. Industry leaders have criticized the government's targets as unrealistic, emphasizing the need for alignment with consumer purchasing behavior. Overall, the PBO's analysis points to the need for substantial reductions in EV costs to incentivize broader adoption.