What to know
- Google searches for “electric vehicles” in Canada increased 57 per cent over the past year, according to new research by MoneySuperMarket.
- Canada’s new Electric Vehicle Affordability Program offers rebates of up to $5,000 for eligible battery-electric and fuel-cell vehicles, and up to $2,500 for qualifying plug-in hybrids.
- High gas prices are driving more Canadians to explore EVs, as fuel price volatility and the rising cost of living encourage drivers to consider alternatives with lower day-to-day operating costs.
- One expert says EVs can save money in the long run, thanks to lower charging costs and reduced maintenance, but savings depend on factors like purchase price, driving habits, access to home charging, and available incentives.
- One expert recommends comparing annual fuel and maintenance costs with EV ownership expenses to determine whether switching makes financial sense over several years.
Amid increasing fuel prices and government incentives, Canadian interest in electric vehicles is increasing according to a new research, and one expert says getting one might actually save drivers money in the long run.
New data from car insurance company MoneySuperMarket revealed that Google searches for “electric vehicles” have increased by 57 per cent in Canada in the past year alone.
This comes months after the Canadian government launched its new Electric Vehicle Affordability Program (EVAP), which came into effect on Feb 16. The EVAP offers incentives of up to $50,000 to encourage more Canadians to purchase EVs.
Incentives include up to $5,000 for battery-electric and fuel cell electric vehicles, and up to $2,500 for plug-in hybrid vehicles. In addition, the discount decreases over the duration of the program, which is from Feb. 16, 2026 to Mar. 31, 2031.
To qualify for the program, the EVs must:
- Be made in Canada or in countries with a free-trade agreement with Canada
- Have a final value of up to $50,000, unless it’s made in Canada
- Weigh under 8,500 pounds
Even with rebates, EVs often carry a higher purchase price than comparable gas-powered vehicles.
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“The rise in interest towards EVs in Canada is likely being driven by several factors. Canada’s Electric Vehicle Affordability Program… certainly has helped make these vehicles a more feasible option for more drivers,” Alicia Hempsted, a car insurance expert at MoneySuperMarket, told Now Toronto.
Interest surges after price volatility
In addition, the surge in EV interest comes as gas prices fluctuate across the country, as the conflicts in the Middle East continue to impact the world’s crude oil supply.
As many Canadians continue to face economic uncertainty and a high cost of living, EVs might seem like a feasible alternative to volatile gas prices.
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Under these conditions, Hempsted said it’s likely that more Canadians are searching for EVs as a response to climbing prices.
“With petrol and diesel prices higher than they have been historically, drivers are more likely to be researching alternative options that may be cheaper to run day-to-day, leading to an interest surge for EVs,” she said.
Can buying an EV actually help Canadians save?
According to Hempsted, whether an EV can save Canadians money depends on a series of factors, and savings might have some time to show.
Although simply buying an EV doesn’t automatically mean drivers will be paying less, the expert said depending on how much the vehicle costs, how much they save in incentives, how much they drive, and their access to affordable charging, it is actually possible to save in the long run.
“EVs can work out cheaper to run over time thanks to lower ‘fuelling’ costs and reduced amount of maintenance, since there’s no oil change or exhaust systems to maintain,” she said.
“It varies from driver to driver. Someone doing short daily commutes with access to home charging will see a very different picture versus someone doing long journeys reliant on public charging.”
It can be difficult to determine exactly how much a driver could save by switching to an EV, but Hempsted recommends Canadians looking to save calculate their annual mileage and fuel spend, and compare it to an estimate of how much maintaining their desired EV model would cost.
Even when conditions are optimal, the expert said immediate savings are very unlikely, and most drivers would feel the difference in costs over the first few years of ownership.
“It’s worth exploring any government incentives to help bring down the upfront cost of an electric vehicle. As well as this, be realistic about how much battery range you actually need, as paying for more range than you will regularly use may increase costs,” Hempsted said.
“If you don’t already have access to home charging, factoring in installation costs can help you build a clearer picture of the potential long-term savings compared with public charging.”
