Analysis | Electric vehicles must be cheaper

A new analysis suggests it's already cheaper to operate electric vehicles (EVs) than their gasoline-powered cousins, but the savings need to increase significantly if Canada is to meet its 2030 EV sales target.

Nearly a year ago, the Liberal government decreed that battery-powered passenger cars should account for one-fifth of all new vehicle sales by 2026, increasing each year until reaching three-fifths by 2030, and all vehicles by 2035.

The most recent statistics show that in 2023, EVs accounted for nearly 11% of new vehicle registrations, the first time they have surpassed the 10% barrier nationally.

An analysis released Thursday by the Parliamentary Budget Officer says the overall cost of EVs must fall by nearly a third to meet that 2030 target.

The cost takes into account the purchase price, including rebates, as well as the annual operating cost over eight years.