Canada EV Readiness Index 2023 - White Paper

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Canada EV Readiness Index 2023 - White Paper
White Paper

Canada EV Readiness
Index 2023
Canada EV Readiness Index 2023 - White Paper
Contents
Introduction                                      2

Key Takeaways                                     3

  Incentives and Legislation                      5

  EV Adoption Rates                               7

  Public Charging Infrastructure                  8

  Climate Suitability                             9

EV Availability                                   10

Pathways to a ZEV Fleet                           12

Acknowledgement                                   13

                                   Foss National Leasing: EV Readiness Index 2023   1
Canada EV Readiness Index 2023 - White Paper
Introduction

Are you ready
for electrification?
The answer to that question is more complicated than
you would expect, with a range of factors that will
influence the “how and when” you go electric. And
these factors vary by each province or territory.

The Index provides an overall province or territory
assessment; with a focus on key factors that have an
impact on transitioning your fleet to electric vehicles.

This Index will provide another source of information
that can help fleet and mobility managers make the right
decisions when it comes to electrifying their fleets.

                                                           Foss National Leasing: EV Readiness Index 2023   2
Key Takeaways
All provinces are making efforts to get the charging and hydrogen refueling
infrastructure built out. It is a combination of policy development and incentives for
private partners.

It’s important to note that no provinces ranked in either of the top two brackets for
EV readiness. Only the provinces of British Columbia and Quebec ranked into the
next bracket up from the bottom. Provinces that ranked highest are not classified as
optimal environments for EV transition but are merely better prepared at this time than
others. These rankings incorporate the fluidity of the transition to electric vehicles and
growth of the market and will likely shift over time to provide an accurate picture of EV
readiness as the landscape evolves.

Climate suitability is                                  Public charging
crucial to EV readiness                                 infrastructure lags
Climate suitability plays a significant factor in the   For the purpose of this index, only public charging
index’s weighting system. Unlike other Canadian         is assessed. It is promising that the federal
readiness studies, Foss National Leasing                government has made recent public charging
assessed the balance of EVs and public chargers         commitments, such as the planned $500 million
instead of evaluating cost of charging and cost         by the Canada Infrastructure Bank to build an
parity between battery electric vehicles and            additional 50,000 charging stations. Developing
internal combustion engine vehicles. Forecasts          this network of chargers will likely take years
for this cost equilibrium shorten yearly, and we        and make sole reliance on public charging
consider climate an increasingly important factor       infrastructure impossible in the short-term.
to determine EV readiness. Cold environments
are not yet suited to EV operation due to
the impact low temperatures have on driving
range, charging speed and duration. European
countries like Norway have proved that it is not
an impossible challenge but driving distances in
Europe are much shorter than average driving
distances in Canada.

                                                                           Foss National Leasing: EV Readiness Index 2023   3
The index ranks the provinces and
territories based on four factors:

    EV      Readiness                   Map
•     Provincial and Territory incentives & legislation          Foss National Leasing Canada EV Readiness
•    Provincial and Territory ZEV adoption rates                 Index 2023 is a comprehensive analysis of the
                                                                 preparedness of all 10 provinces and 3 territories
•     Public charging infrastructure
•     Climate suitability

    The index ranks the provinces and territories                                        EV Readiness Score
    ( 1 being the most EV ready and 12 being the least)
                                                                                                   EV Ready

                                                                                                   EV Accepted

                                                                                                   EV Progressive

                                                                                                   Least EV Ready

                6

              Yukon
                                   12

                         Northwest Territories           12

                                                       Nunavut

                    1

               British
              Columbia         8
                                                                                                                   7
                            Alberta
                                                        11                                                 Newfoundland

                                           9
                                                     Manitoba
                                                                                           2
                                      Saskatchewan
                                                                                      Quebec
                                                                      9

                                                                    Ontario                                            3   Prince Edward
                                                                                                              5                Island
                                                                                                         New           4   Nova
                                                                                                       Brunswick           Scotia

                                                                                   Foss National Leasing: EV Readiness Index 2023   4
Incentives and Legislation
Any law or incentive beneficial to EV ownership or usage that the province or territory has put in place.
Areas of focus were vehicle purchase incentives, home charging incentives, commercial/residential
infrastructure programs, and other legislation that promotes the adoption of EVs.

Quebec and British Columbia currently offer the most comprehensive programs in Canada that
target these areas of focus. As of January 1, 2022, charging station operators in the province of
British Columbia are eligible to participate in the BC Renewable and Low Carbon Fuels Requirements
Regulation and Greenhouse Gas Reduction Act (“BC-LCFS”). If you operate charging stations in a
public, fleet, workplace, retail, hospitality, and multi-family residential (five or more dwelling units)
location, you may be eligible to generate credits under the BC-LCFS.

Quebec (Zero Emission Vehicle Standard) and British Columbia (Zero Emissions Vehicle Act) are
the only two provinces in Canada that have provincial mandates for ZEV sales. The impact of this
legislation is that OEMs will be prioritizing zero emission vehicles sales in Quebec and British Columbia
over other provinces and territories.

As of today, almost half the provinces and territories in Canada do not offer any incentives for EVs.

                                                                          Foss National Leasing: EV Readiness Index 2023   5
EV Incentives as of December 23, 2022
                Electric       Home            Chargers @             HOV      Toll   Applicant            Program             Limitations
Region          Vehicle        Charger         Business               Access   Access                      Target End
                                                                                                           Date

Federal         Up to $5,000 N/A               N/A                    N/A      N/A       Dealership        March 31,           Maximum 10
Government                                                                                                 2025                units per year
(Passenger
Vehicles)

Federal         Up to          N/A             N/A                    N/A      N/A       Dealership        March 31,           Maximum 10
Government      $200,000                                                                                   2026                rebates or
(Med/Heavy      Class 2B                                                                                                       $1MM per
Trucks)         to Class 8                                                                                                     year

Alberta         N/A            N/A             N/A                    N/A      N/A       N/A               N/A                 N/A

British         Up to $3,000 50% of            50% of cost to max.    Yes      N/A       Dealership        Until funding       Maximum 10
Columbia                       costs to max.   of $2,000; $14,000                                          expires             rebates
                               of $350         max per workplace

Manitoba        N/A            N/A             N/A                    N/A      N/A       N/A               N/A                 N/A

New             Up to $5,000 Up to $750        Program funding        N/A      N/A       Dealership,       Until funding
Brunswick                                      ended                                     Driver or         expires
                                                                                         Lessee

Newfoundland    Up to $2,500 N/A               Up to 50% of costs     N/A      N/A       Driver or         March 15,
& Labrador                                     to max. of $5,000                         Lessee            2023
                                               per L2 charger

Nunavut         N/A            N/A             N/A                    N/A      N/A       N/A               N/A                 N/A

Northwest       Up to $5,000 $500              N/A                    N/A      N/A       Driver or         Funding
Territories                                                                              Lessee            Expired

Nova Scotia     Up to $3,000 N/A               N/A                    N/A      N/A       Driver or         Until funding
                                                                                         Lessee            expires

Ontario         N/A            N/A             N/A                    Yes      N/A       N/A               N/A                 N/A

Prince Edward   Up to $5,000 Free Level 2      N/A                    N/A      N/A       Dealership        Until funding       Maximum of
Island                                                                                                     expires             5 rebates per
                                                                                                                               year

Quebec          Up to $7,000 $600              Available              Yes      Ferries   Dealership,       Expires             Minimum
                                                                               & A30     Driver or         March               lease term of
                                                                                         Lessee            31/2027             36 months
                                                                                                                               for 3 or more
                                                                                                                               rebates

Saskatchewan    N/A            N/A             N/A                    N/A      N/A       N/A               N/A                 N/A

Yukon           Up to $5,000   50% of          75% of costs to        N/A      N/A       Driver or         Until funding       Maximum
                               costs to max.   max. of $7,500                            Lessee            expires             10 units per
                               of $750         (ends Mar. 31, 2024)                                                            year

                                                                                         Foss National Leasing: EV Readiness Index 2023   6
EV Adoption Rates

This consumer-driven factor gives us an                                                 % of New      % of 2026
                                                          Rank    Province
indication as to which provinces and territories                                        Vehicle Sales Target

are contributing to the EV transition, through              1     British Columbia      14.6%                -5.4%
vehicle availability and market maturity. This
factor looks at total new vehicle sales in each             2     Quebec                11.4%                -8.6%

province or territory and the number of those
sales that are either BEV and PHEV, and BEV                 3     Ontario               5.5%                 -14.5%

only. The results were then compared to the first
                                                                  Prince Edward
federally mandated EV sales target set for 2026             4     Island
                                                                                        3.3%                 -16.7%

to better understand a province or territory’s
                                                            5     New Brunswick         2.2%                 -17.8%
potential to meet this target in the short-term.
                                                            5     Manitoba              2.1%                 -17.9%
Consumers in BC and Quebec lead all of Canada in
new EV purchases through the first quarter of 2022.         7     Saskatchewan          1.5%                 -18.5%
OEM production constraints and supply chain
issues are expected to continue through 2022 and            8     Alberta               0.1%                 -19.9%

2023. This will impact the availability of EVs in the
marketplace and could hamper continued growth           Note: Nunavut, Northwest Territories, Yukon,
in new EV sales over the short-term.                    Newfoundland, and Nova Scotia currently have
                                                        not published ZEVs as a percentage of new
                                                        vehicle sales

                                                                            Foss National Leasing: EV Readiness Index 2023   7
Public Charging Infrastructure
This factor looks at the availability and scope of charging infrastructure in each province or territory
and the impact it would have on EV adoption. Examples of some areas of focus were the number
of public chargers, the number of EVSE ports per 100 EVs, and the ratio of DC Fast chargers to
Level 2 chargers.

As stated previously, Canada as a whole, lags behind in charging infrastructure needed. Both Federal
and Provincial governments have made recent announcements related to additional investment in
public infrastructure, but for the short-term, fleets will not be able to rely solely on public charging as
a solution and will need to invest in home chargers for their employees and charging infrastructure at
their places of work.

        Public EVSE Availability Map
                                                                                 EVSE Ports per 100 EVs

                                                                                         40 or More

                                                                                         20 - 30

                                                                                         11 - 20

                                                                                         1 - 10

                   1

                 Yukon
                                      1

                            Northwest Territories               0

                                                           Nunavut

                       3

                  British
                 Columbia        23
                                                                                                       1
                              Alberta
                                                            8
                                                                                             Newfoundland

                                               13
                                                         Manitoba
                                                                                 3
                                          Saskatchewan
                                                                               Quebec
                                                                       5

                                                                     Ontario                               25   Prince Edward
                                                                                                  16                Island
                                                                                            New             1   Nova
                                                                                          Brunswick             Scotia

                                                                                Foss National Leasing: EV Readiness Index 2023   8
Climate Suitability
 Cold weather is known to severely impact battery               40% at -10 degrees celsius. Even hot
 efficiency and is therefore a significant factor in            temperatures can impact battery efficiency, as
 assessing EV readiness.                                        much as 20% when over 30 degrees celsius.

 Canada is a colder country by nature and has a                 The province or territory rankings are an average
 geographically expansive territory. EV range is                score, rather than exact. Therefore, some larger
 an important consideration when transitioning                  provinces like Ontario or Quebec, may have
 your fleet to these vehicles, and it is important              varying micro-climates less suited to EVs than
 to understand the impact climate can have on                   their score might suggest. It will still be necessary
 these ranges.                                                  to assess the specific location in question to
                                                                determine feasibility.
 Based on a study Geotab completed, the
 optimum temperature for battery performance                    As technology keeps advancing, EV manufacturers
 was 21.6 degrees celsius. The study found                      continue to look to ways to reduce the negative

EV Climate Suitability Scoring
 that a battery’s efficiency could be impacted                  effect of climate on battery efficiency.
 by as much as 20% at 0 degrees celsius and

                                                                 Climate Score
                                                                                                      Score          KPI Temperature
                                                                        4-5
                                                                                                                     no months where the
                                                                        3-4
                                                                                                          5          temparature is above 30C or
                                                                        2-3                                          below -10C

                                                                        1-2                                          1 or more months where the
                                                                                                          4          temparature is above 30C or
                                                                        0-1                                          below -10C

                                                                                                                     2 or more months where the
      1.4
                                                                                                          3          temparature is above 30C or
                                                                                                                     below -10C
     Yukon
                   1.4
                                                                                                                     4 or more months where the
                Northwest
                Territories
                                                                                                          2          temparature is above 30C or
                                             1.4
                                                                                                                     below -10C
                                           Nunavut
                                                                                                                     6 or more months where the
       4.1                                                                                                1          temparature is above 30C or
      British                                                                                                        below -10C
     Columbia     2.6
                                                                               3.2
                Alberta
                                           2.0
                                                                          Newfoundland
                               2.0       Manitoba
                                                                 2.0
                          Saskatchewan
                                                               Quebec
                                                       2.6

                                                     Ontario                        4.1
                                                                           Prince
                                                                          Edward
                                                                           Island
                                                                                      4.1   Nova
                                                                                            Scotia

                                                                                                 Foss National Leasing: EV Readiness Index 2023   9
EV Availability (by expected release date)
Data Source: https://electricautonomy.ca/ev-tracker/

                                     Currently Delivering
 Auto Maker                                                       Due 2022                   Due 2023                       Due 2024
                                     in Canada

 Acura                                                                                                                      Acura ZDX

 Alfa Romeo                                                                                                                 Alfa Romeo "Brennero"

 Arrival                                                          Arrival Van (Q4 or 2023)

 Audi                                E-tron , E-tron Sportback,
                                     e-tron GT

 BMW                                 BMW iX, BMW i4               BMW i7 (Q4)

 Cadillac                                                         Lyriq (Q4)                                                Cadillac Celestiq

 Canoo                                                            MPDV (Q4 or 2023),
                                                                  Pickup (Q4 or 2023)

 Chevrolet                           Bolt EUV, Bolt EV                                       Equinox electric
                                                                                             crossover (Q3), Blazer
                                                                                             electric SUV (TBA),
                                                                                             electric Silverado pickup
                                                                                             truck (Q2)

 Fisker                                                           Ocean (Q4 or 2023)                                        Pear (2024)

 Ford                                Mustang Mach-E,              F-150 Lightning (Q2)                                      Ford Explorer EV/Edge
                                     E-Transit                                                                              EV

 Genesis                                                          G80 Electrified, GV60      Genesis GV70
                                                                  (Q4 or 2023)

 GM BrightDrop                                                    Zevo 600 (Q4)              Zevo 400

 GMC                                                              Hummer EV Pickup           Hummer EV SUV, Sierra
                                                                                             EV

 Honda                                                                                                                      Prologue

 Hyundai                             KONA Electric, IONIQ 5                                  IONIQ 6                        IONIQ 7

 Imperium                                                         SEV (Q3 or Q4)

 Infiniti

 Jaguar                              Jaguar I-PACE

 Jeep                                                                                                                       Jeep Recon

 Wagoneer S

 Kia                                 Niro EV, SoulEV, EV6                                    EV9 (Q3 or Q4)

 Lamborghini

                                                                                                         Foss National Leasing: EV Readiness Index 2023   10
EV Availability (by expected release date)
Data Source: https://electricautonomy.ca/ev-tracker/

                                     Currently Delivering
 Auto Maker                                                      Due 2022                      Due 2023                        Due 2024
                                     in Canada

 Land Rover                                                                                                                    Range Rover Electric,
                                                                                                                               Range Rover Sport Electric

 Lexus                                                           RZ 450e (Q4)

 Lotus                                                                                                                         Eletre SUV

 Lotus Evija

 Lucid                               Lucid Air

 Maserati                                                                                      Grecale Folgore SUV (Q3         Maserati GranTurismo
                                                                                               or Q4)                          Folgore

 Mazda                               MX-30

 Mercedes-AMG                                                    AMG EQS 53 4MATIC+
                                                                 (Q4), AMG EQE 53
                                                                 4MATIC+ (Q4)

 Mercedez-Benz                       EQS sedan

 EQB SUV, EQE Sedan (Q4),            eSprinter (Q3 or Q4)        Mercedes-Benz EQE SUV
 EQS SUV,

 MINI                                Cooper SE

 Nissan                              Leaf                        Ariya (Q3)

 Polestar                            Polestar 2                                                Polestar 3                      Polestar 5

 Porsche                             Taycan , Taycan Cross                                     Macan EV                        Electric 718 Sports Car
                                     Turismo, Taycan Sport                                                                     (2025)
                                     Turismo

 Ram                                                                                                                           Ram 1500 Revolution

 Rivian                                                          Rivian R1T (Q3), Rivian R1S
                                                                 (TBA)

 Rolls-Royce                                                                                   Spectre

 Subaru                                                          SOLTERRA (Q3)

 Tesla                               Model S , Model 3 , Model                                 Cybertruck (Q4) , Roadster
                                     X , Model Y

 Toyota                                                          bZ4X (Q2)

 VinFast                                                         VF 8, VF 9 (Q4)

 Volkswagen                          ID.4 (Hanover Production,   ID.4 (Chattanooga                                             ID.BUZZ (2024), ID.AERO
                                     sold out)                   Production)                                                   (2024)

 Volvo                               XC40 Recharge , C40                                                                       Volvo EX90

 Workhorse                           C-Series
                                                                                                            Foss National Leasing: EV Readiness Index 2023   11
Pathway to a Zero                        You need to plan the integration of zero emission
                                         vehicles (ZEV's) into your fleet over time. This is not
Pathways to a ZEV Fleet
Emissions Fleet                          something that happens immediately, transitioning your
                                         standard fleet vehicles takes planning, strategy,
                                         education, and time.

                       Assess
                       High level examination of goals, timelines
                       and feasibility of converting your fleet.

 Where to
  Start?

                                   Design
                                   More comprehensive & detailed examination,
                                   specific plans on how to integrate
                                   hybrid/electric/hydrogen vehicles into your fleet.

                       Implement/Pilot
                       Execution of the plan design.

                                    Manage
                                    You've started the pilot, now it's time to focus
                                    on gathering data and analyzing in order to
                                    optimize and make long term decisions.

                       We'll Get You There!
             Zero
            Emission   One of the most important decisions you’ll make on your
             Fleet
                       journey to a zero emission fleet is selecting a fleet
                       management partner. Selecting the right partner upfront is
                       crucial to scaling your fleet quickly, efficiently, and
                       cost-effectively.

                                                            Foss National Leasing: EV Readiness Index 2023   12
Acknowledgement
Foss National Leasing understands that the EV transition happening in the automotive
sector reflects a rapidly changing environment. If one province or territory has scored
poorly today, that does not mean that it will continue to score poorly tomorrow. With
the rapid pace of change, new technologies, and new information; Foss National
Leasing will continue to monitor the impact on these factors and we will publish
revised reports on an ongoing basis.

For more information about sources use, please reach out to us at
marketing@fossnational.com

                                                             Foss National Leasing: EV Readiness Index 2023   13
Are you ready for
      electrification?

            For more information, reach out to us at marketing@fossnational.com

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