Ottawa, Ontario — People are in the mood to purchase, according to the latest consumer poll from KPMG which found nearly 70 percent of Canadian drivers intend on buying a new vehicle within the next ten years.
The survey, which was distributed to Canadians over the age of 18 between Dec. 21, 2022 and Jan. 13, also found that 61 percent of those drivers intending to purchase a vehicle want to do so within the next five years.
Concerning various powertrain options, only 28 percent of respondents said they were planning on purchasing a plug-in hybrid electric vehicle (PHEV) or electric vehicle (EV), as compared to 42 percent who plan to opt for the internal combustion engine (ICE). Meanwhile, 30 percent voiced their preference for traditional hybrid vehicles.
Those who plan to purchase within the next five years responded that they will likely get an ICE vehicle, or whatever is currently available on dealers’ lots.
In light of this current slump in EV adoption, KPMG has adjusted the predictions put forth in its Global Automotive Executive Survey, which previously forecasted that EVs would capture between 20 percent and 70 percent of the total vehicle sales market by 2030.
The organization’s adjusted prediction now lies at 10 to 40 percent of total sales, and according to its executive survey, 83 percent of global automotive executives say they are confident that the EV sector will grow more profitable in the next five years.
As of the second quarter of 2022, 87 percent of new vehicle registrations in Canada belong to ICE powertrains, with many drivers still citing concerns of cost, charger anxiety, battery technology, limited supply and rising electricity prices as barriers from transitioning to emissions-free mobility.
The report says that while general enthusiasm for EVs hasn’t necessarily declined, consumers still have many unaddressed concerns; namely the fact that 82 percent of respondents say battery degradation remains a “huge concern” for them, 70 percent are worried about the availability and reliability of public charging infrastructure and 72 percent simply don’t want to have to pay more than $50,000 for an emissions-free vehicle.
To the latter point, 81 percent of respondents said that rising interest rates have put EVs out of their price range.
On the point of charging, 79 percent of respondents feel government should be subsidizing the purchase of home charging stations for EV drivers.
Speaking to the ever-present need for Canadians to go on road trips, 80 percent of surveyed respondents said they won’t consider buying an EV with a driving range of less than 400 kilometers.
Click here for the full results from KPMG’s most recent auto industry consumer poll.
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