Rising Electric Vehicle Adoption in Canada
With the growing popularity of electric vehicles (EVs) in Canada, the collision repair sector is experiencing significant changes. According to the Canada Energy Regulator, battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) now constitute over 10% of new vehicle registrations nationwide. As a result, repair shops are increasingly servicing these environmentally friendly vehicles.
A recent report by Mitchell International, a company specializing in claims and collision software, highlights the impact of this trend. The report indicates that claims frequency for repairable BEVs in Canada surged by 3.84% in 2024, marking a 34% increase compared to the previous year. Similarly, claims frequency for mild hybrid electric vehicles (MHEVs) and PHEVs also witnessed a 24% growth during the same period. Additionally, claims severity for BEVs rose to $7,241, reflecting a 2% increase from the prior year. MHEVs and PHEVs experienced claims severity of $6,104 and $6,261, respectively.
Total Loss Trends and Regional Insights
Mitchell’s EV Collision Insights Report 2024 reveals an uptick in total losses for BEVs, with figures climbing to 8.7% in 2024 from 5.9% in 2023. Ryan Mandell, Mitchell’s director of claims performance, attributes this rise in total loss frequency to declining vehicle values and a surge in catastrophic claims during the latter half of 2024.
Regional Variations in EV Markets
In North America, British Columbia leads the BEV market with a claims frequency of 7.64%, followed by California at 5.59% and Quebec at 5.68%. The provinces of British Columbia and Quebec, known for low electricity prices and generous zero-emission vehicle (ZEV) incentives, see ZEV adoption rates almost double the national average. These regions account for approximately 20% of new vehicle registrations, especially in the passenger car and multi-purpose vehicle segments, where ZEVs represent between 20% and 30% of new registrations.
Top BEV Models by Claims Frequency
Mitchell’s report also identifies the top five BEV models in Canada by claims frequency for 2024:
- Tesla Model 3: 32.72% (a decrease of 8.03% from 2023)
- Tesla Model Y: 25.91% (an increase of 4.60% from 2023)
- Hyundai Kona EV: 4.53% (a decrease of 0.91% from 2023)
- Chevy Bolt: 4.43% (a decrease of 0.79% from 2023)
- Ford Mustang Mach-E: 4.19% (an increase of 0.77% from 2023)
The Tesla Model 3 and Tesla Model Y, also identified as the best-selling EVs in North America by Rho Motion, lead the way in claims frequency.
