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In Canada, electric cars represent a tiny portion of all the vehicles on the road in the near future. By 2018, the automotive industries forecast that there will be about 500,000 plug-in electric cars on the road. This translates to only 2.5% of all the vehicles on the roads today. Yet, many automotive companies are eagerly rushing into this little plug-in electric car segment. So who can benebfit the most from the rise of electric cars?

Government

The Canadian (and U.S.) government is in favour of hybrids and plug-in electric cars. In Ontario for example, the government offers cash rebates to hybrid buyers. On the other hand, all three levels of the Canadian government are happily collecting $15-billion of fuel tax each year. Increasing popularity of electric cars can potentially mean less tax revenue for the government. Nonetheless, it builds a good government image to be a green leader. The government is doing the right thing. When tax revenue runs low, the government can always impose new taxes to balance the budget.

Another benefit of promoting electric cars is that the new technology creates jobs – better power grid and infrastrucutre, need for charging stations, battery recycling facilities, etc.

Environment

Most people and companies would agree that electric cars are good for the environment because the plug-in electric cars produce zero emission.

What about the massive battery when the electric car retires? The dead batteries will be heading to companies like Toxco, which makes sure that the batteries are properly recycled or disposed. Toyota is offering rebates for hybrid owners to return the batteries to the manufacturer.

Consumers

Consumers have a few items to consider:

Convenience

When was the last time you forgot to charge your iPhone or iPod? To be honest, I usually charge my cell phone when the “low battery” indicator lights up. While people can live with not having a cell phone for a short period of time, it is a huge inconvenience if one forgets to charge the electric car. So far I haven’t seen any electric cars that can plug into the wall socket by itself (other than the iRobot Roomba. Wait, that is a vaccuum cleaner though). Any electric car has a range limit – it can only go that far in one full charge. It takes hours to fully recharge the battery, not to mention that the only charging station readily available is your house. Tough luck for apartment and condominium owners.

Savings

Obviously, owners of cars like the Lexus LS600h do not buy the luxury hybrid to save money. Comparing the number of LS600h I see on the road versus the Toyota Prius, it is evident that most people purchase hybrids or electric cars to save money. But can consumers benefit the most from fuel saving?

Electric and hybrid car owners can save money only:

• if the car is trouble-free since parts and repair costs are higher than most gasoline counterparts.
• if one keeps the car for a long period of time as prices are generally higher than comparable gasoline models, even with government cash incentives.
• if the battery does not need to be replaced for the duration of owning the electric car.
• if gasoline prices continue to climb.

That is quite a list of “if”s that can be avoided if one buys a VW Golf TDI or a Smart ForTwo.

Car Companies

Auto companies know that there is only that much oil human beings can extract from planet Earth. Sooner or later, oil is likely to be depleted. What good is a Ferrari if there is no gasoline to keep it running? (Ferrari already has plans to develop hybrid sport cars) That is probably the number one reason why car companies are so keen on plug-in electric cars – to ensure company’s survival in the long run. On top of that, it is so much easier for companies to ask government for grants to develop an electric car, than to develop the next Dodge Viper SRT, right?

The environment and the auto makers are the biggest winners.