Ashley Nunes is a senior research associate at Harvard Law School and teaches economic policy at Harvard College.
Down the line, when a lack of return forces these automakers to rethink their investments, we may ask ourselves: what were the billions given to these companies actually for? Take 2023, a year when new vehicle sales in Canada topped more than 1.6 million. If you believe consumer surveys, EV sales should have totalled more than 900,000 . The actual number of EVs sold in 2023? Fewer than 186,000. The same goes for 2022, when just EVs accounted for just 8 per cent of sales despite 68 per cent of Canadians reporting interest in bolt-powered autos.
One might argue that there is justification for all these EV plants, given that the Prime Minister has promised that new gas-powered autos will be unavailable for sale by 2035. And by 2026, just two years from now, automakers must commit to ensuring that at least 20 per cent of vehicles sold here are electric. For good measure, Ottawa has promised to fine manufacturers who don’t comply.
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