Electric Vehicle Sentiment Survey Canada, March 2021

About the study In February 2021, CarGurus surveyed 495 automobile owners in Canada on their sentiments towards electric vehicles through an online survey. Respondents were balanced in terms of key demographics (gender, region, age). CarGurus also runs this study in the U.K. and U.S., and in the U.S. has ran this study for several years.

CarGurus 2021 Electric Vehicles Sentiment Survey, Canada (n= 495) 2 © 2021 CarGurus, Inc. All Rights Reserved. Timeline to adoption We see rapid “mainstreaming” of EVs among car owners. Over half (52%) of car owners expect to own an EV in the next ten years. Making charging stations widely available would be the most effective way to speed up adoption, in addition to cost incentives and making the logistics of EV ownership easier.

What is your overall opinion about the development of electric vehicles?

52%

39%

Excited Neutral Concerned

How likely are you to own an electric vehicle? showing probably/definitely

54%

32%

16%

In the next year In the next five years In the next 10 years

How likely are you to own an electric vehicle? showing probably/definitely Canada United States United Kingdom 66%

54% 52% 44%

32% 30% 22% 16% 16%

In the next year In the next five years In the next 10 years

How likely are you to own an electric vehicle..? showing probably/definitely (United States) 2018 2019 2021

52% 45%

34% 30% 26%

15%

In the next five years In the next ten years

How likely are you to own an [electric or hybrid vehicle]? showing probably/definitely Hybrid vehicle Electric vehicle

54%

38% 32%

25%

15% 16%

In the next year In the next five years In the next 10 years

CarGurus 2021 Electric Vehicles Sentiment Survey, Canada (n= 495) 8 © 2021 CarGurus, Inc. All Rights Reserved. Making charging stations parts widely available is most effective in encouraging adoption…

How effective would the following be in convincing you to buy an electric vehicle? showing very/extremely effective

If there were more charging stations available in my area 64%

Tax incentives/rebates 60%

If long-term fuel & maintenance savings outweigh the higher asking price 60% …in addition to cost If it were easy to find replacement parts, including batteries 59% incentives and making the Extended warranties 59% logistics of EV ownership easier. If the vehicle has good expected resale value 50%

If electric vehicles become more mainstream 49%

If the battery production was cleaner 48%

CarGurus 2021 Electric Vehicles Sentiment Survey, Canada (n= 495) 9 © 2021 CarGurus, Inc. All Rights Reserved. Electric vehicles considered Tesla is the most trusted brand to develop EV technology, but 80% of those interested in EVs say they’re open to several brands when it comes time to buy. SUVs/crossovers are most likely type to be considered as EV though few are available today.

What company do you trust the most to develop electric vehicles? showing top 10 results 33%

13% 8% 7% 7% 6% 4% 3% 2% 2%

Tesla Toyota GM Honda None Ford BMW Hyundai Audi Nissan (Chevrolet, Cadillac, Buick)

Which brand of electric vehicle are you likely to consider? Select all that apply. showing top 10 results among those who plan to own an EV within decade

Tesla 53%

Toyota 40%

Honda 25%

Ford 25%

Audi 19%

BMW 18%

Hyundai 14%

Lexus 14%

Volkswagen 14%

GM (Chevrolet, Cadillac, Buick) 13%

Which brand of electric vehicle are you likely to consider? Select all that apply. showing top 10 results among those who plan to own an EV within decade

Tesla 53% Toyota 40% Honda 25% Ford 25% Audi 19% BMW 18% Hyundai 14% Lexus 14% Volkswagen 14% General Motors (Chevrolet, Cadillac, Buick) 13% Nissan 12% Jeep 11% Subaru 11% Kia 10% Mercedes-Benz 9% Volvo 7% Jaguar 4% Lucid Motors 4% Google 4% Mitsubishi 4% Ram 4% Genesis 3% Rivian 3%

How much do you agree with the following statement: “I am open to several brands of electric vehicles” showing among those who plan to own an EV in next decade

15% 80% compared to 63% when asked about vehicles generally in Nov 2020

Agree Neutral Disagree

Which ways of acquiring an alternative fuel vehicle would you consider? Select all that apply. showing among those who plan to own… within decade Electric Hybrid

86% Buy as new 81%

20% Buy as used 19%

20% Buy as manufacturer approved used 18%

14% Lease as new 14%

Which categories of alternative fuel vehicles are you likely to consider? Select all that apply. showing among those who plan to own an EV within decade

SUV/Crossover 63%

Sedan 42%

Hatchback 18%

Pickup truck 17%

Minivan 10%

Other (e.g., coupe, convertible, wagon) 9%

Would you consider these electric cars in particular? Yes No Not sure 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ford Mustang Mach-e 35% 43% 22%

Chevrolet Bolt EV/EUV 35% 39% 26%

Would you consider these electric trucks in particular? Yes No Not sure 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ford MustangFord F Mach-e-150 EV 30% 48% 22%

ChevroletTesla Bolt Cybertruck EV/EUV 33% 47% 20%

Hummer EV 20% 61% 19%

Though Cybertruck beats Ford among those most likely to adopt EVs. Among those who plan to own an EV within the decade, 52% are interested in a Tesla Cybertruck vs. 45% in a Ford F-150 EV and 33% in a Hummer EV. CarGurus 2021 Electric Vehicles Sentiment Survey, Canada (n= 495) 18 © 2021 CarGurus, Inc. All Rights Reserved. Implications for the automotive industry

1. Electric vehicles pose a big opportunity for the auto industry: over half of consumers plan to own an electric vehicle in the next decade.

2. Building charging stations is the most effective solution for speeding up EV adoption. 64% of consumers say they’d be much more likely to consider an EV if there were more charging stations available in their area.

3. Tesla is the current EV market leader, in reputation and purchase consideration, but in this emerging space buyers are excited by the possibilities and less brand loyal so there’s good chances for competitors to disrupt.

1. Make EVs visible alongside gas-powered vehicles on your lot. You'll be more likely to get the attention of potential buyers if they're not hidden in the back of your lot.

2. Consider acquiring a handful of used EVs. Though most EV shoppers would prefer to buy new, close to a quarter of those interested would consider buying CPO (26%) or used (22%).

3. Start investing in EV technology at your dealership. Add charging stations on your lot and equip your service bays to handle EVs properly.

4. Teach your staff how to talk to shoppers about EVs and tell them not to shy away from conversations about electric. Your shopper might not buy electric this time around, but chances are their next vehicle purchase (likely in 5-10 years) will be.