Buying An Electric Vehicle Will Save You Thousands : Report
by David Wieser
Everyone around you is talking about rising costs of living and gas prices. A recent survey by Clean Energy Canada, a program at Simon Fraser University, confirmed that switching to an electric vehicle can save you tens-of-thousands of dollars over its lifetime. Climate change was ranked as one of the top pressing issues for the next decade by Canadians across age groups.
While electric vehicles aren’t a solution for either rising gas prices or climate change, they definitely are a big help. Clean Energy Canada compared total ownership costs of popular electric car models against well-known traditional car models. They assumed eight years of driving and up to 20,000 km of driven distance every year.
Breaking down the results
Hyundai Kona, Canada’s second-most selling EV in 2021, performed the best. When compared to a gas-powered car in the same price range, Kona has a lifetime cost of $56,000. On the other hand, the gas version’s lifetime cost is $71,100. The report considered the gas price at $1.35/litre, which was the average in 2021 but still extremely below the current British Columbia rates.
Bulk of your savings will come from saving on gas but electric vehicles also require less maintenance. For example, the maintenance cost of a 2022 Chevrolet Bolt costs half compared to a gas-powered 2022 Toyota Corolla hatchback.
According to a report by KPMG, 60 percent of Canadians feel it’s time to buy an electric car and 51 percent say they’ll never buy a gas-powered vehicle. Rising gas prices and climate change have been two important catalysts driving Canadians towards EVs. 48 percent confirmed that their next car will be an electric one.
Electric vehicle industry faces a huge challenge
While the demand’s quickly rising, Peter Hatges, communications director with Clean Energy Canada, is worried about the supply. You can’t go to a dealership, buy the car you like, and drive home in it. There’s a few weeks to months of waiting until you receive your electric vehicle.
The federal government announced a requirement this week that by 2030, 60 percent of total cars sold must be electric. By 2023, all vehicles are expected to be zero emission. On April 4, 2022, the government announced to contribute $259 million to General Motors’ efforts to revitalize its auto manufacturing operations across Ontario and boost EV production. They are expected to make similar contributions throughout the year.
GM has invested over $2 billion until now and will use the federal contribution towards the assembly plant in Ingersoll where they’ll start producing electric commercial vans later this year. François-Philippe Champagne, Minister of Innovation, Science and Industry, mentioned in a press release that the contribution aims at generating more jobs for Canadians, more clean vehicles, and better economic growth.