How P.E.I. could boost its already strong EV sales by following in footsteps of 2 other provinces

P.E.I. has some of the strongest electric vehicle sales in the country, but there are two provinces that are operating in a completely different league.

In 2017, when Statistics Canada started counting vehicles registered in the provinces by fuel type, there were very few running on batteries on P.E.I.

To be specific, 46. Not even four dozen. Those fully electric or plug-in hybrid vehicles represented about one out of every 2,500 registered in the province.

In 2021, the provincial government began offering a $5,000 rebate on the purchase of EVs, in addition to the $5,000 offered by the federal government. Registrations for plug-in hybrids almost doubled in 2021, and they tripled for battery-only electric vehicles.

The incentive came as the supply of electric vehicles was improving, said Jeff Turner, director of clean transportation for Dunsky Energy and Climate Advisors.

"We have seen significant improvements in Atlantic Canada in terms of EV availability," said Turner.

"That's an important step, to make sure that folks who are interested in an EV can actually go to a local dealership and try a few out and maybe take one home."

In 2023, according to a release from Statistics Canada this week, 0.9 per cent of registered P.E.I. vehicles were plug-in electric, almost one in 100. Ontario had a higher rate, with about one in 70 or 1.4 per cent.

But B.C and Quebec led the country by a large margin. In both provinces, about one in 30 registered vehicles is a plug-in electric.

Addressing supply and demand

Two key things have put those provinces so far ahead, said Turner. One is just how long they've been at it.

"They've really been in this game for a long time, providing up-front financial incentives for EVs," he said.

The other, to extend the sports metaphor, is that Quebec and B.C. are playing both sides of the ball.

Consumer rebates are a demand-side incentive, increasing demand for EVs by effectively making them cheaper. But Quebec and B.C. are also strong on the supply side, requiring that EVs represent a certain percentage of vehicles shipped to the province to be offered for sale.

"Combined with those generous incentive programs that have been around for over 10 years, and significant investment in charging infrastructure right from day one in this market, I think that's what set B.C. and Quebec out on that path," said Turner.

"[Manufacturers] have skin in the game to make sure that they're making these vehicles available and they're marketing them."

Automakers have also been pushed to increase supply in the massive California market and more than a dozen other American states. That may be a factor in the recent expansion in the variety of EVs available, including more larger SUVs and pickup trucks.

Waits can last months

Supply has been an important issue in recent years, with dealers sometimes lacking vehicles even for a test drive, and consumers often waiting months for delivery.

Adam Toner, president of the P.E.I. Automobile Dealers Association, told CBC News in an email that supply is crucial to expanding the market on the Island.

"[It] will come down to those manufacturers designing, building and supplying enough units to meet the demand for affordable [EVs] that are desirable for the mass market," wrote Toner.

He said sales for both all-electric and hybrid plug-ins grow "each year as consumers have more models to explore and choose from."

The federal government is currently moving on the supply side of the issue as well, setting a target that 20 per cent light-duty vehicles sold in Canada be EVs by 2026. The targets call for sales to be 60 per cent EVs by 2030, and 100 per cent by 2035.

No plans to change program

But these are national requirements. There is no requirement for these targets to be hit within each province, which could potentially leave P.E.I. behind if bigger provinces demand more vehicles.

"There is still the risk that those leading jurisdictions would still dominate the sales," said Turner.

In an emailed statement to CBC News, the provincial government said it is encouraged by the uptake of EVs by consumers since the $5,000 rebate was introduced.

"There are no current plans to change the EV program or implement supply-side regulations provincially," the email said.

The province noted that its Office of Net Zero is working on a five-year action plan for 2025 to 2030 that will assess how Prince Edward Island is doing at reaching its net zero targets and what it needs to do next to reduce transportation emissions.

"P.E.I. will be watching the federal zero-emission sales… targets," it added.