Automotive News Canada - September 2023 - 4

4
* SEPTEMBER 2023
In some places, long waiting lists,
and in others, EVs languish on lots
For ZEV
adoption,
it's a country of contrasts
By ROSEANN DANESE
WINDSOR CORRESPONDENT
THE STATE OF THE EVOLVING
electric vehicle market in Canada is a tale
of two extremes; It's either wonderful or
awful, depending on where in the country
the story is unfolding.
In Quebec, there are significant consumer
rebates and a government zero
emission vehicle sales mandate has been
in place since 2018. As a result, Bourgeois
Chevrolet-Buick-GMC in Rawdon, about 80
kilometres north of Montreal, can't keep
EVs in stock, said Sales Consultant Hugo
Jeanson.
But in Alberta, with no provincial
rebates and no ZEV sales mandate,
McManes Automotive Group President
Jim McManes has a surplus of EVs sitting
on the lots. McManes has 18 franchised
dealerships in Western Canada.
In 2022, Quebec had 13.2 per cent of
national ZEV registrations,
according to auto
analyst S&P Global
Mobility. Alberta, with
about half the population,
accounted for 3.5
per cent.
Consumers in
McManes' part of the
country are spooked by
the dearth of charging
stations and the high
cost of EVs, he said.
The average price
of a gasoline-powered
compact utility vehicle
before any incentives
is $43,000, compared
with $62,000 for a compact
electric utility vehicle,
said Robert Karwel,
senior manager of the
Canadian automotive
practice at J.D. Power.
" We're a huge truck
market in Western
Canada, and a lot of my
customers don't want an
electric vehicle until the
technology is way better,
LED BY GOVERNMENT
But in Quebec, which offers consumer
rebates of up to $7,000 per qualifying
vehicle, on top of the federal rebate of up
to $5,000, Jeanson said he has had " zero
inventory " for the past two to three years.
There's a 1,500-person waiting list for the
new electric 2024 Chevrolet Equinox crossover,
slated to go into production next
year, he said.
" We've been taking orders for the past
few years, so I would say it's a five-year
wait to get one. "
Across the country, registrations of
ZEVs declined in the first quarter of 2023
compared with the final three months of
2022.
I'm in business to
look after my
customers and
work well with my
manufacturers.
But when I've got
a bunch of electric
vehicles on my lot
that nobody wants
to buy, I'm really
concerned. "
Jim McManes
McManes Automotive
Group president
and they have range and towing power, "
McManes said.
ZEV registrations totaled 30,533 from
January through March, accounting for
8.6 per cent of all Canadian vehicles registered,
according to data from Statistics
Canada published Aug. 2. This compares
with 33,399 ZEV registrations for the
fourth quarter of 2022, which equated to 9.6
per cent of vehicle registrations. Secondquarter
numbers are not yet available.
For used EVs and plug-in hybrids, there
was a 44-day supply of
EVs and hybrid plug-ins
on lots in June. The optimal
supply is about 60
days, said Daniel Ross,
senior manager of industry,
insights and residual-value
strategy at
Canadian Black Book. By
comparison, there was
a 46-day supply of internal-combustion-engine
(ICE)
vehicles on used-vehicle
lots, Ross said.
Canadian Black Book
does not track days supply
for new vehicles, so
those figures aren't available
for Canada. In the
United States, the supply
for EVs reached a high
of about 90 days in June,
according to figures by
Cox Automotive.
" A 60-day supply has
been the statistical average
of good vehicle inventory
turnover, so when
you're below that, it's
because you have a lack
of inventory, " Ross said.
Charles Bernard,
lead economist at the
Canadian Automobile
Dealers Association
(CADA), said EV supply
is outpacing demand,
which is complicated
by government sales mandates that force
automakers to sell more EVs while insufficient
charging infrastructure remains
a critical obstacle for buyers. Quebec and
British Columbia have ZEV mandates in
place and lead the country in per-capita
adoption. A pending federal-government
mandate requires 20 per cent ZEV sales by
2026.
" The main people who buy [pickups],
they're not people in Montreal, " Bernard
said. " They're people in Red Deer [Alta.]
and the rural parts of the country, and
that's where the infrastructure is lacking. "
Jeanson: Bourgeois Chevrolet-Buick-GMC has donated about 100 chargers to
customers, churches, schools and golf courses. " It's good for business, " he said,
" and it's all about giving in your community and helping the adoption of EVs. "
SUPPLIED PHOTO
to make money; I'm in business to look
after my customers and work well with
my manufacturers. But when I've got a
bunch of electric vehicles on my lot that
nobody wants to buy, I'm really concerned. "
McManes:
" The Lightning truck is
incredibly expensive - and I'm talking
Western Canada; I'm talking farmers,
oil rig people. They don't want this
truck. ... There's no place to plug it in,
and we can't sell them. " PHOTO: FORD
Ford has lowered the price of the F-150
Lightning pickup, but that hasn't ignited
sales, Bernard said.
" For the moment last year, they were
the hottest thing on the market, and now
they're having a hard time getting those
vehicles off the lot. "
'NEVER MOVES' OFF LOT
McManes said his stock of EVs - especially
the luxury models and pickups -
is sitting on the lot.
" It never moves, and [automakers] are
spending all this money on EVs, " he said.
" The Lightning truck is incredibly expensive
- and I'm talking Western Canada;
I'm talking farmers, oil rig people. They
don't want this truck. ... There's no place
to plug it in, and we can't sell them. "
Automakers, McManes said, are out of
step with consumers. " That's a dangerous
game to play, and they're all spending
$40, $50 billion on full electrification
that people can't afford. "
McManes is concerned " about where
this industry is going. I'm in business
CADA's Bernard said making EVs
more affordable and ensuring sufficient
charging infrastructure can help boost
sales.
" The only way you can fight this is
making sure you create an environment
where ... consumers are comfortable that
EVs will work out with their daily routine, "
he said.
Ross of Canadian Black Book agreed.
" We run an annual survey through Ipsos
that gives us some EV adoption insight, "
he said, " and what we noticed this year
is a lot of the concern around EV electric
range has shifted to electric charging
capabilities.
" The infrastructure is not there for
capacity of mass adoption. "
Bourgeois has been addressing those
concerns, Jeanson said. Over the past
decade, the dealership has given about
100 chargers, valued at about $100,000, to
customers, municipal offices, churches,
golf courses and schools.
" It's good for business, " Jeanson said,
" and it's all about giving in your community
and helping the adoption of EVs. "
Jeanson advises dealers to embrace
EVs by getting behind the wheel.
" They need to start driving the cars, "
he said. " I always say, to fall in love with
an EV or to understand it, you have to
drive it. And then you'll understand what
it is and all the advantages. It's a better
car, it's a smoother ride, it makes economical
sense. " - ANC
There's a 1,500-person waiting list for the new electric 2024 Chevrolet
Equinox crossover, said Hugo Jeanson of Bourgeois Chevrolet-BuickGMC,
and the dealership has had " zero inventory " of EVs for the past
two to three years. PHOTO: CHEVROLET
Automotive News Canada - September 2023

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