EVs cheaper to run but costs must come down to drive sales up fast enough: PBO

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A new analysis suggests it’s already cheaper to operate electric vehicles than their similar gas-powered cousins, but the savings must get substantially higher if Canada is to meet its EV sales target in 2030.

Almost a year ago the federal Liberals mandated that battery-operated passenger cars must make up one-fifth all total new vehicle sales by 2026, growing each year until it hits three-fifths by 2030, and all vehicles by 2035.

The most recent statistics show in 2023 EVs made up almost 11 per cent of new vehicle registrations, the first time it exceeded the 10 per cent barrier nationally.

An analysis published today by the parliamentary budget officer says the overall cost of EVs has to fall by almost one-third to meet that 2030 target.

The cost looks at purchase price, including rebates, as well as the annual operating cost over eight years.