en.Wedoany.com Reported - After years of investment in the electric vehicle sector with growth falling short of expectations, Canada's car rental industry is now experiencing a sudden surge in demand for electric rentals due to soaring oil prices, leading to supply constraints. Steve Liborio, operator of a Thrifty rental franchise in Burlington, Ontario, said his location does not offer electric vehicles and can only meet demand with hybrid cars. Liborio noted that customers often request EVs but ultimately accept hybrids that cost CAD 10 more per day, saving on fuel costs.
This summer's rising oil prices have squeezed tourist budgets, prompting some Canadians to try to avoid gas stations by opting for EVs. However, due to tight EV rental inventory, many are unable to find their desired models at rental lots. In previous years, gasoline cars remained the mainstream choice due to driver concerns over range anxiety, insufficient charging infrastructure, and the time required for charging on the road.
Daniel Ross, Director of Strategic Market Insights at Canadian Black Book, pointed out that some companies have already sold off EVs or downsized their fleets amid low consumer acceptance and high maintenance costs. Rental company Hertz initially planned to increase its EV fleet in 2021 but later scaled back some of its global fleet electrification decisions, liquidating one-third of its global EV supply in 2024. The number of EVs in Hertz's Canadian fleet remains unclear. Ross stated that Canada's EV rental inventory is still small and limited to cities with infrastructure. After market volatility subsided following the pandemic-induced supply chain bottlenecks, rental companies have tended to prioritize acquiring any available vehicles, with the majority of supply still being gasoline cars. Ross believes that recent demand is insufficient to drive rental companies to increase EV supply.
However, dealer interest in EVs has grown. The ongoing war in Iran and the effective closure of the Strait of Hormuz have disrupted one-fifth of the global oil supply, pushing up global oil prices and prompting more Canadians to reconsider EVs. This renewed interest, combined with the federal government's reintroduction of EV subsidies in February, helps offset some costs. A February report from DesRosiers Automotive Consultants Inc. showed that EV sales surged by over 50% in multiple provinces shortly after the subsidy program launched. A May 26 report from Transport Canada indicated that within three months of the subsidy's reintroduction, Canadians claimed over CAD 122 million in federal subsidies for new EVs.
On the peer-to-peer car rental marketplace Turo, EV bookings surged 80% year-on-year as of mid-May. Bassem El-Rahimy, Vice President of Turo Canada, said this is seen as an indicator of people trying to avoid current high fuel prices. The platform has about 2,000 EVs and hybrids available for rent. El-Rahimy noted that searches for hybrids on Turo rose 180% year-on-year from April 29 to May 29, potentially indicating a broad shift toward fuel-efficient options. He added that EVs are still available on the rental market but supply began tightening before the long weekend and is expected to be fully booked for the summer. Danielle Stuart, a spokesperson for Enterprise Rent-A-Car, said the company has not observed a significant increase in demand for hybrids and EVs. Enterprise has nearly 160,000 hybrids and EVs in its global fleet, offering limited models in Canadian markets with demand and infrastructure, but did not disclose the number in Canada.
Calgary resident Jeff Bannard often rents EVs for work trips but only chooses them when they are the cheapest option. Recently, he has not found good deals, noting that daily rental rates for EVs can be 20% to 30% more expensive than traditional small gasoline cars, though fuel costs are lower. He spends about CAD 0.56 to CAD 0.62 per kilowatt-hour charging at Supercharger stations, which is cheaper compared to filling up at gas stations.
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