The high cost of

electric vehicles (EVs)

in Canada remains a barrier for many thinking of buying one, which is a big reason why prospective buyers are considering those made in China.

Prime Minister Mark Carney in January opened the door to cheaper made-in-China EVs when he announced Canada would allow

49,000 Chinese vehicles into Canada

at a tariff rate of 6.1 per cent. The previous tariff rate was 100 per cent.

At the time, the government said more than half of the imported vehicles would cost less than $35,000, compared to the current average EV price of between $50,000 and $70,000, depending on the make.

Canadians are taking notice of the price difference, as more than half of EV-curious buyers would consider a Chinese model, such as those made by BYD Co. Ltd. or Chery Automotive Co. Ltd., with 31 per cent pointing to the affordability of the incoming brands,

according to a new survey from Rates.ca.

Prices remain a major hurdle for those considering an EV. The survey said 59 per cent of those Canadians interested in an EV are mostly concerned about the price, followed by 54 per cent concerned about the battery range.

That’s why the plan for cheaper EVs “really is going to move the needle,” Erik Johnson, vice-president and senior economist at BMO Capital Markets, said in the report.

As part of the federal government’s plan to reduce EV prices, it has also introduced the

electric vehicle affordability program (EVAP)

that offers incentives of up to $5,000 when purchasing an EV costing less than $50,000.

But despite the measures to boost EV sales, interest is still fairly weak. Rates.ca said just 17 per cent of Canadians are interested in owning an EV within the next five years, while another 13 per cent are considering an EV but not in the near term.

High gas prices in Canada may change the sentiment. Historically, periods of high fuel prices have changed vehicle trends, Rates.ca said, though it added that saving a few hundred dollars in fuel won’t cover the extra costs of buying an EV.

“We’re starting to see interest come back,” Daniel Ivans, a Rates.ca insurance expert, said in a release. “Fuel prices and rebates are helping bring EVs back into the conversation, and lower-cost models are making them feel more attainable.”

 Sign up here to get Posthaste delivered straight to your inbox.


Canadas’ economy grew 0.1 per cent in January, slightly beating economist expectations.

The country saw gains in mining, as well as oil and gas extraction and construction were among the nine industrial sectors to expand in the month, more than offsetting losses in manufacturing and automotive production.

The surprise comes after the country reported a disappointing decrease of 0.2 per cent in December.

Of note, real estate reported its first decline in 10 months amid falling housing prices across the country.

Read more here.

 

  • 1:30 p.m.: Bank of Canada releases summary of deliberations
  • Today’s Data: Auto sales for March
  • Earnings: Tilray Brands Inc.

 

  • Suncor reveals expansion plans as key oilsands mine enters its last decade
  • Old Age Security reform is a good idea; arbitrary clawbacks are not
  • Canada’s GDP edges higher, beating forecast
  • AIMCo has no plans to reduce U.S. exposure despite trade tensions, CIO says

    If a loved one is not interested in discussing estate planning, the best advice is to hire a lawyer to avoid being blindsided when the time comes. Offering some helpful suggestions can also help, especially if it means convincing them to seek professional financial advice.

    Find out more.

    Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on  one of the country’s most important sectors.

    Sign up here.

    Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).

    McLister on mortgages

    Want to learn more about mortgages? Mortgage strategist Robert McLister’s

    Financial Post column

    can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his

    mortgage rate page

    for Canada’s lowest national mortgage rates, updated daily.

    Financial Post on YouTube

    Visit the Financial Post’s

    YouTube channel

    for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

    Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

    Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at 

    posthaste@postmedia.com

    .

    Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here