Zero-emission vehicles continued their upward trend in sales, setting new highs in the second quarter of 2023. And if predictions hold, we could be seeing significantly more of these vehicles in the next couple of years
One out of every 10 (10.5 per cent) new vehicle registrations is a ZEV, according to S&P Global Mobility’s Q2 Canadian Automotive Insights, up from 9.2 per cent in the first quarter of the year. That number was made up from 7.8 per cent of battery electric and 2.7 per cent of plug-in hybrid electric vehicles.
S&P defines a ZEV as a battery electric or a plug-in. Hybrid electric vehicles are not included. But it was hybrids that continued proving to be popular with buyers, accounting for 10.9 per cent of new registrations.
Internal combustion engine vehicles (78.6 per cent) led the way by far for new registrations.
Hybrids have been progressively increasing since the second quarter of 2022 when they sat at just under 7 per cent. Meanwhile, after suffering a dip in the first quarter of this year to 7.1 per cent from 8.4 per cent at the end of 2022, BEVs picked back up. The total volume of BEVs was up 46.3 per cent. Plug-ins continued their slower but still upward movement from 2.1 per cent at the start of this year.
S&P predicts a significant uptick in ZEVs over the next year. By the end of this year, it expects ZEV market share to hit 13 per cent and reach 17 per cent in 2024. By 2025, ZEV market share will reach 23 per cent, it predicted.
British Columbia led all provinces with the highest rate of electrification adoption — BEVs made up 16.9 per cent of all new registrations there and ZEVs were 20.5 per cent overall. Quebec reported the highest volume with 40.5 per cent of overall ZEV volume for Q2 2023. ZEV market share there is 18.4 per cent.
Ontario’s ZEV market share came in at a distant third with 7.2 per cent. , falls below the national average. However, S&P noted that “the province saw a substantial increase in ZEV volume during the second quarter of 2023, with a notable growth of 55.2 per cent.” Ontario contributed 28 per cent of all ZEV registrations in Canada.
Tesla dominates the market, but that hold is slipping. Ontario’s market was 63 per cent Tesla in Q1 2022 — that’s down to 42 per cent. B.C’s went from 53 per cent to 40.6 per cent. In Quebec, Tesla’s share went from 32.5 per cent to 22 per cent.