Canadian EV sales hampered by ... car dealerships

If the increased adoption of electric vehicles is to be a major plank in our fight against global warming, then we need to at least make sure the damned things are available. Sales of all vehicles have plummeted during the pandemic of 2020, but one of the main reasons why the take up of electric vehicles is so low is that Canada has a supply problem, and demand for EVs is outstripping supply and stocks in dealerships.

Two-thirds of Canadian dealerships had no EVs in stock at all, even before the pandemic struck. Outside of the three largest provinces - Ontario, Quebec and British Columbia - EVs are almost impossible to find. Quebec and BC still offer attractive rebates for the purchase of EVs; Ontario does not, thanks to Doug Ford's cancellation of the previous Liberal government's rebate scheme. There is also a federal financial incentive available countrywide.

There are various reasons for this, including a shortage of battery components, and manufacturers prioritizing shipments to China and Europe over North America. But there are other, less honourable, reasons too: many dealerships choose not to stock EVs because of the extra consumer education involved, the need for battery-charging infrastructure, and the loss of potential service and repair revenue, i.e. ironically, because EVs require much less service than ICE vehicles, dealerships make less money off them.

Waiting lists for EVs run from a few months to over a year, which is a ridiculous situation to be in. This in itself is another reason for dealerships not to stock EVs - why would they want to pursue a purchase with a year's delay when they can sell other cars immediately? This catch-22 situation is of their own making.

Electric vehicles are expected to become more and more popular as their battery range increases and their prices come down. For example, California has just committed to phasing out gasoline-powered cars by 2035, and where California leads, Canada usually follows eventually. But the car industry here is certainly not making things any easier, and more governmemt intervention would help there.