As personal EV demand wanes, the business case for switching grows

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Business Case for Switching to Electric Vehicles Grows

Demand for electric vehicles (EVs) is slowing for average Canadians, but new data suggests businesses should seriously consider changing their fleet. A new report from Canadian telematics firm Geotab examined data from more than 750,000 light-duty commercial vehicles in North America and Europe and found 41 per cent of their internal combustion engines (ICE) were considered cost-effective and range capable of an EV transition, which would provide an average savings of $16,000 per vehicle over seven years. Overall, the report found 75 per cent of analyzed light-duty ICE vehicles could be replaced with an EV today, without infrastructure upgrades or charging improvements, while 81 per cent of medium-duty ICE vehicles and 58 per cent of heavy-duty trucks have daily usage within the range of commercial EVs currently on the market. Read More

Quick Facts

  • A new report from Geotab suggests 75% of light-duty ICE vehicles could be replaced with an EV today, without infrastructure upgrades or charging improvements.
  • Geotab’s analysis found that 41% of internal combustion engines (ICE) in commercial vehicles were considered cost-effective and range capable of an EV transition, providing an average savings of $16,000 per vehicle over seven years.
  • AutoTrader’s recent report revealed that only 46% of Canadians are interested in buying an EV as their next vehicle, despite falling EV prices.

Geotab’s report highlights the potential for businesses to transition to commercial EVs, with significant cost savings and environmental benefits. The analysis found that many fleet applications and duty cycles could be fulfilled by an EV, presenting a compelling case for a zero-emission transition. Additionally, the report suggests that transitioning cost-effective light-duty ICE vehicles to EVs could save 8.3 million liters of fuel and 19 million metric tons of CO2 emissions over the next seven years.

On the other hand, personal EV demand among Canadians is declining, as revealed by a recent report from AutoTrader. Despite falling EV prices, only 46% of Canadians are interested in purchasing an EV as their next vehicle, down from 56% in 2023 and 68% in 2022. Supply chain issues in the EV industry are easing, with inventory levels up 145% year-over-year and overall growth in new EVs up 522%. However, skepticism about Canada’s zero-emissions goals and potential political changes are contributing to the decline in personal EV demand.

The methodology used by Geotab involved analyzing the driving patterns of light-duty ICE vehicles in North America and Europe over one year. The study considered the range capability and total cost of ownership of EVs compared to new ICE vehicle replacements. AutoTrader’s data was collected via an online survey, revealing a decline in Canadian interest in purchasing EVs despite falling prices and increased inventory levels.

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