STANDING OUT
WHY IS CANADA SEEING CONTINUED EV GROWTH?
USED MARKET HESITANCY PLUS:
THE LATEST ZEV SALES STATS
Disc
on your mind?
We want to hear from you about anything you read in EV World magazine. Send your email to adam@turnkey.media
WHY THIS EXPERT ISN’T CONCERNED ABOUT GRID STRAIN FROM EVS
I firmly believe the issue is with the power lines not being able to sustain the increased demand. Especially when the governments are trying to eliminate fossil fuels for furnaces, water heaters, stoves and barbeques. There are older areas in our cities where the power lines are near capacity now. Nobody is upgrading them yet.
Bob Ward, The Auto Guys
WHY THE FORECAST FOR GLOBAL EV SALES IS DECLINING
I don’t think a wide range of affordable EVs are the answer. Consumers would much prefer a fewer selection of serviceable vehicles with the promise of affordable longevity than a cheap throw-away car. A long-lasting serviceable product is better for consumers’ financial well being, better for the environment and global warming and also better for my aftermarket business. Win, win, win.
Rob Nurse, Bob Nurse Motors
WHY THE FORECAST FOR GLOBAL EV SALES IS DECLINING
ICE vehicles have not had the same slowdown as EVs. The issue is what it always has been and will be. EVs have a saturation point. They will never go above it for long and will never replace ICE vehicles. Their sales will be hurt by hybrids as well, as people can deal with them in normal life situations better. Same as fake meat and purely vegan foods. There is a saturation point that will always limit growth no matter how much the government pushes it and provides subsidies for it. Simple answer is, if the government has to pay you to buy it, it will not last.
John Dixon, reader
HOW THE BEV LANDSCAPE WILL CHANGE
OK, we’re hearing a lot about the investments but what about the repairs? It’s about time we start publishing the cost of all these batteries and the turnaround times. What is repairable and what is not? When is there going to be certification for those in the aftermarket? The way I see it right now we’re in the Wild Wild West when it comes to EVs. It’s time to make OEMs accountable
for the future of these vehicles, not just the production. We need to ask these questions now. The phone calls I’ve made have been very revealing and will make the average consumer think twice about investing in an EV.
Todd
Holmes, Holmes and Son Service
PRICE TAG CONTINUES TO HOLD BACK POTENTIAL EV BUYERS
Do you really think price is the only reason people are not buying EVs? Why does nobody address the severely underdeveloped charging infrastructure? I am sure that plays a big reason to not buy an EV.
Bob Ward, The Auto Guys
THE CANADIAN AUTOMOTIVE AFTERMARKET NEEDS TO PLUG IN
It's nice to know that I am not the only one voicing common sense opinions. Unfortunately, all vehicles are becoming throwaway cars. I can’t remember the last time I did an engine swap, cylinder head or even a timing chain. Consumers would rather replace a vehicle than deal with an expensive repair cost. That mind set will surely transfer over to EVs, so why would I tool my shop 15-20 years ahead of needing to for repairs that consumers won’t purchase? Because my industry is stating that the ones that implement will thrive. Please, I have heard that before. I have no problem slowly implementing EV brakes and chassis repairs and letting the dealerships deal with the high voltage issues which will probably end up being vehicle replacements anyway. Whatever proves to be profitable for my business will be what I will implement. Fixing every repair on every make and model vehicle is not a practical or profitable way to operate a shop.
Rob Nurse, Bob Nurse Motors
B.C. CHANGES EV REBATE RULES
Bottom line, if you’re buying a $56,000 novelty, you don’t need my help paying for it. While the rest of us drive vehicles we can afford, existing in a world of ever exponentially increasing taxes and levies, I cannot find a violin tiny enough to play for all those affected.
Geoff Walton, Grant Street Garage
Publisher | Peter Bulmer (585) 653-6768 peter@turnkey.media
Managing Editor | Adam Malik (647) 988-3800 adam@turnkey.media
Contributing Writers | David Mayers
Creative Director | Samantha Jackson
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Delon Rashid, (416) 459-0063 delon@turnkey.media
Production and Circulation | Delon Rashid, (416) 459-0063 delon@turnkey.media
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THE RISE OF ZEROEMISSION VEHICLES
More and more Canadians are going to their dealership and buying a battery or plug-in hybrid electric vehicle.
But are these sales numbers due to current incentives, or is this growth expected to continue? Either way, more of these vehicles are on our roads, and the automotive aftermarket will play a bigger role.
Recent data from S&P Global Mobility has shown that 16.5 per cent of new vehicle registrations were ZEVs, with 12.2 per cent being battery electric vehicles (BEVs) and 4.3 per cent being plug-in hybrids (PHEVs). Canadians are increasingly embracing BEVs and PHEVs.
Customers have long depended on their automotive service professionals for their internal combustion engine vehicles. Given the strong relationships people have with their shops, this is an opportunity to continue seeing those customers for their regular maintenance needs—if they’re aware of them.
As highlighted in previous issues of EV World, many customers are still unaware of the specific maintenance requirements for electric vehicles, creating an opportunity. No need to rehash this — check out the Fall 2023 issue for those details.
However, the numbers also reveal a complex picture. Quebec is phasing out its rebates for ZEVs entirely, while British Columbia is adjusting the thresholds for rebate eligibility. This raises the question: Is the current growth in ZEV sales a sign of a sustainable trend, or are consumers rushing to take advantage of rebates before they disappear?
Regardless of the answer, the fact remains that there are significantly more electric vehicles on our roads than ever before right now. These vehicles will age into the aftermarket sweet spot.
Furthermore, S&P Global Mobility projects that by 2027, 30 per cent of new vehicles sold will be ZEVs. Canada is on track to sell 1.8 million new vehicles this year — if those stats hold, that means half a million new ZEVs on our roads in just that year alone.
The growth of ZEVs cannot be ignored. While there are potential signs that progress could slow, the overall trend is clear: Growth is happening now. The automotive aftermarket must be ready to adapt to this new reality. The future of our industry depends on our ability to meet the needs of an evolving vehicle landscape. This means not only understanding the technical aspects of ZEV maintenance but also educating customers about their vehicles' needs.
The rise of zero-emission vehicles in Canada is a trend that cannot be overlooked. Despite potential fluctuations in growth rates due to changing rebate policies, the overall direction is clear: More and more Canadians are choosing BEVs and PHEVs.
President & Managing Partner | Delon Rashid Head of Sales & Managing Partner | Peter Bulmer
Corporate Office
48 Lumsden Crescent, Whitby, ON, L1R 1G5
The automotive aftermarket industry must be proactive in preparing for this shift, ensuring that we are equipped to service and support the growing number of ZEVs on our roads. By doing so, we can contribute to a more sustainable future while also securing the long-term success of our industry.
Adam Malik Managing Editor, EV World
ZEV SALES IN CANADA SET ANOTHER RECORD
CANADIANS ARE CONTINUING to buy more zero-emission vehicles as another new high was hit for new registrations of battery and plug-in hybrid electric vehicles.
Of all new vehicle registrations in the third quarter of 2024, 16.5 per cent were ZEVs, according to data from S&P Global Mobility. That’s a 3.1-point increase from the 13.4 per cent in the second quarter.
The national battery electric vehicle adoption rate was 12.2 per cent with plug-in hybrid electrics making up 4. 3 per cent.
Internal combustion engine still dominated overall new vehicle registrations, but its penetration fell from 75% in Q2 to 70 per cent in Q3.
S&P Global Mobility pegged 2024 full-year adoption rates to come in above 15 per cent, reaching 266,889 units. And it sees a continued upward trajectory in the coming years.
“This growth is projected to continue, with adoption rates rising to 19.0 per cent in 2025, 25.3 per cent in 2026, and 30.7 per cent in 2027,” its report said.
That said, S&P Global Mobility did warn of potential headwinds that could get in he way of growth.
“However, several risks could impact these projections, including the pace of charging infrastructure development, economic fluctuations influencing consumer purchasing power, potential changes in government policies or incentives and technological advancements,” it noted. “Addressing these risks will be crucial to achieving the forecasted growth and maintaining the momentum in ZEV adoption.”
Of note, hybrids made up 13.5 per cent of new vehicle registrations; BEVs were 12.3 per cent. After the gap between the two expanded to 2.4 percentage points at the start of this year, it has narrowed to 1.2 percentage points.
Quebec, which will phase out purchase incentives for ZEVs, led
the country with a 34.6 per cent adoption rate, up from 28.4 per cent in Q2. British Columbia came in second at a 29.4 per cent adoption rate. Yukon rounded out the top three with a 10.3 per cent adoption rate, but it was the only region to see a drop compared to the precious quarter (12.3 per cent).
Ontario (9 per cent) placed fifth while Prince Edward Island came fourth (9.6 per cent).
In the three biggest cities, Montreal saw ZEV adoption rise from 22.2 per cent in 2023 to 32.8 per cent in 2024. Vancouver stayed mostly stead but still slaw a slight decline from 27.1 per cent in 2023 to 26.9 per cent. Toronto saw a modest rise, going from 9.2 per cent in 2023 to 9.6 per cent in 2024.
ARE WE CLOSE TO WIRELESS EV CHARGING?
WIRELESS CHARGING FOR electric vehicles (EVs) is a step closer after Oak Ridge National Laboratory (ORNL) and Volkswagen demonstrated a 270-kilowatt (kW) wireless power transfer system, the American Society of Mechanical Engineers reports.
The 270-kW system, the most powerful wireless charging solution to date, uses resonant inductive coupling to transfer energy between coils embedded in the ground and the vehicle. With 98 per cent efficiency, it rivals traditional wired chargers while eliminating the need for cables and plugs.
“This represents a huge leap forward,” said Madhu Sudhan, principal investigator at ORNL. “It could transform EV charging, making it more convenient and accessible for everyday use.”
The technology has the potential to dramatically cut charging times, especially for larger EVs like trucks and buses. It could also simplify urban EV infrastructure by addressing space constraints and reducing reliance on bulky charging stations.
Future applications include wireless systems in parking garages, streets or highways, enabling automatic charging for vehicles, including autonomous models. However, widespread adoption will require industry-wide standardization and scalability for various EV models.
This innovation could remove significant barriers to EV adoption, offering a more seamless charging experience for consumers and advancing the EV industry's evolution.
FLEETS LOOK TO ELECTRIFY FASTER THAN CONSUMERS
A NEW GLOBAL survey reveals significant progress in fleet electrification across Europe, North America and Asia-Pacific, although fleet managers face challenges in managing mixed-energy fleets.
The Frost & Sullivan report, The Commercial EV Transition:
Global Insights on a Mixed-Energy Fleet Future, commissioned by WEX, highlights that while adoption rates vary by region, nearly half of fleet managers expect electric vehicles (EVs) to comprise 50 per cent or more of their fleets by 2030.
The transition to EVs is ongoing, but fleet managers encounter difficulties in integrating electric and internal combustion engine (ICE) vehicles. Factors such as location, industry and fleet size influence the pace of electrification.
“There is high ambition to integrate EVs, not only to meet sustainability goals but also to reduce operational costs,” said Dr. Jose Pereira, director at Frost & Sullivan. “However, this transition presents significant challenges.”
Key hurdles include managing EV infrastructure, energy costs and updating fleet management systems. Despite these challenges, EVs offer long-term savings through lower fuel and maintenance costs and higher driver satisfaction.
The report also identified top concerns for fleet managers: rising fuel costs, operational expenses and shrinking profit margins, underscoring the pressure to balance cost control with sustainable fleet practices.
UNCERTAINTY IN USED EV MARKET POINTS TO STRONG ICE MARKET
A NEW LANG MARKETING report identifies significant hurdles for electric vehicles (EVs) in attracting pre-owned vehicle buyers, potentially extending the lifespan of internal combustion engine (ICE) vehicles.
The report, EVs Lack Appeal for Many Pre-Owned Buyers, Boosting the Long-Term ICE Aftermarket, underscores that 80 per cent of vehicles on U.S. roads are pre-owned. While EVs are gaining popularity among new-car buyers, many pre-owned buyers are hesitant due to concerns about range, charging infrastructure and long-term reliability.
“Without a strong market for pre-owned EVs, sales of new BEVs could face headwinds, causing ICE vehicles to remain on the road longer,” the report warns.
Range anxiety is a significant issue, with many pre-owned buyers prioritizing driving range. Additionally, over 75 per cent of new BEV owners charge at home, a convenience not available to many preowned buyers.
The report also raises concerns about the high cost of battery replacement, which could discourage repairs for older EVs, leading to higher scrappage rates.
As a result, Lang predicts ICE vehicles will remain dominant in the pre-owned market, supporting a “Golden Age” for the ICE aftermarket beyond 2040.
THERE’S A NEW TOP
EV MANUFACTURER
CHINESE AUTOMAKER BYD has surpassed Tesla as the leading electric vehicle (EV) manufacturer, according to a new ranking by ABI Research. The competitive assessment evaluated 18 OEMs based on innovation and implementation across nine criteria, including battery technology, platform design and electrified sales.
BYD outperformed Tesla with its vertical integration and broader range of vehicle models. While Tesla excelled in vehicle range, fast charging and platform innovation, BYD’s strong performance in multiple vehicle segments helped it claim the top spot.
The ranking categorizes companies into three groups:
• Market leaders: BYD, Tesla
• Mainstream: GAC Aion, General Motors, Hyundai-Kia, Stellantis, Volkswagen, XPENG, ZEEKR
• Followers: BMW, Ford, Honda, Mercedes-Benz, NIO, Nissan, Renault, Toyota, Volvo
ABI Research analyst Dylan Khoo noted that the EV market is rapidly growing, with some OEMs fully embracing the transition to electrification, while others lag behind. Chinese EV brands like ZEEKR and XPENG were also recognized for their innovation.
Despite its top ranking, BYD is not sold as a passenger vehicle in North America due to tariffs on Chinese-made EVs, limiting its market presence in the region.
CANADA SHOWS GROWING MOMENTUM FOR EVS
CANADA’S ELECTRIC VEHICLE (EV) market is growing, but infrastructure and consumer incentives could hinder further progress, according to EY’s 2024 Mobility Consumer Index.
While EV sales in Canada continue to rise, the report noted significant challenges including range anxiety, high purchase prices and inadequate charging infrastructure. A large portion of Canadian consumers (66 per cent) remain hesitant to buy an EV due to these factors.
Globally, EV demand has plateaued in key markets like the U.S. and Western Europe, primarily due to economic and geopolitical concerns. This slowdown is also attributed to practical issues such as battery longevity and insufficient charging options.
In Canada, despite a surge in available EV models and $25 billion in new investments from automakers, the report stressed the need
for a national effort to build charging infrastructure and improve consumer readiness.
EY emphasized that to reignite global EV growth, governments and industry stakeholders must collaborate on enhancing infrastructure, offering stronger consumer incentives and addressing concerns like affordability and charging accessibility.
Without these efforts, the momentum in Canada and globally could stall, slowing the transition to electric mobility.
REPORT SAYS CANADA NEEDS 31 PER CENT DROP IN EV PRICES TO MEET 2030 TARGETS
A NEW REPORT FROM Parliamentary Budget Officer (PBO) Yves Giroux warns that the price of electric vehicles (EVs) needs to drop by 31 per cent for Canada to meet its 60 per cent EV sales target by 2030.
The report highlights that without changes in policy or technology, this price reduction is essential to reach the target set by the federal government’s Electric Vehicle Availability Standard, which mandates 60 per cent EV sales by 2030 and 100 per cent by 2035.
Currently, EVs represent nearly 11 per cent of new vehicle registrations, but concerns over high costs, charging infrastructure, and slowing demand persist. In 2023, the average cost of an EV was $73,000.
Giroux noted that the total cost of owning an EV over eight years is lower than a gas-powered vehicle, with savings expected despite the higher purchase price. However, achieving the sales targets requires reducing EV prices or increasing the costs of traditional vehicles.
The report also warned that while the federal government aims to increase charging ports by 39,000 by 2030, it will still fall short of demand, underscoring the need for further investment in infrastructure.
EV BATTERY PRICES TO DROP, RANGE EXPAND
VOLKSWAGEN
that electric vehicle (EV) battery production costs will decrease by up to 40 per cent by 2035, alongside improvements in charging speed, durability, range and safety.
Speaking at the International Vienna Motor Symposium, Steiner emphasized that standardization is key to reducing battery costs, which currently account for about 40 per cent of vehicle costs. VW plans to standardize components in design, production and recycling, aiming for 80 per cent of its vehicles to feature a unified battery cell.
VW’s strategy includes a range of cells, from low-cost sodium-ion to high-performance solid-state cells, which promise energy densities over 400 watt-hours per kilogram, enabling up to 800 kilometres of range.
However, solid-state technology faces challenges, including a higher reliance on lithium, which is subject to price fluctuations.
Conventional lithium-ion batteries, especially lithium iron phosphate variants, will continue to dominate the cost-sensitive mass market.
Sodium-ion batteries, currently in use in China, are expected to grow in availability due to their lower cost and increased safety.
Battery experts noted that Japan, South Korea, China and the U.S. are leading in solid-state development, but technical and financial hurdles remain.
THE RELIABILITY
ISSUES WITH EV CHARGING INFRASTRUCTURE
A NEW REPORT HIGHLIGHTS significant reliability issues in electric vehicle (EV) charging infrastructure, slowing the growth of EV adoption.
The EV market has expanded rapidly, with global sales up 233 per cent over the past five years, according to the International Energy Agency. However, the rise in EV sales has outpaced the development of public charging infrastructure in the U.S., leading to concerns from potential buyers.
A 2023 survey found that 80 per cent of Americans hesitant to purchase an EV cited a lack of charging infrastructure. Furthermore, one in five charging attempts fails, exacerbating the issue.
ChargerHelp’s Annual Reliability Report, based on over 19 million data points, found a lack of comprehensive data explaining these failures. The report reveals that poor interoperability among vehicles, charging stations, networks and the grid is a major barrier to reliable service and broader EV adoption.
Kameale Terry, CEO of ChargerHelp, emphasized the need for standardized, synchronized data, maintenance and communication networks to ensure higher uptime and more reliable charging. For the EV market to thrive, these issues must be addressed to meet the growing demand for EV infrastructure.
CHARTING ELECTRIC VEHICLE POPULARITY
How is Canada seeing continued growing EV adoption? // By Adam Malik
To read the news, one wouldn’t be faulted to think that battery electric vehicles and plug-in hybrid electric vehicles are falling out of favour with Canadians and the vehicle-buying public around the world.
In November, Ford announced it was pausing production of its electric F-150 Lightning model due to declining demand for electric vehicles from the motoring public.
In September, Swedish automaker Volvo scaled back on its pledge to be fully electric by 2030. Instead, it will aim for about 90 per cent of its vehicles to be electric or plug-in, with 10 per cent being mild hybrid.
Consumers cite a lack of affordable models, not enough charging points and concern over performance in cold weather.
The U.S. has seen stalling EV buying rates, sitting at about 10 per cent or so for the last several quarters. European countries are seeing bumpy performance — Germany dropped year-over-year as subsidy programs ended while France and the U.K. both saw modest growth.
Canada has been writing its own story. In the third quarter of 2024, 16.5 per cent of new vehicle sales were BEV or PHEV — collectively called zero-emission vehicles. That was up from 13.4 per cent in the second quarter, which itself was an increase from the 12.5 per cent to open the year.
“If you go back to April time when the [first] quarter numbers came out, there were so many articles saying that the wheels have dropped off,” said automotive aftermarket industry expert Martyn Johns. “I think there's a lot of misunderstanding, actually, and Canadians are a little bit smarter in the whole picture.”
Todd Campau, aftermarket practice lead at S&P Global Mobility, agreed. He thinks the negative press revolves around the fact that there wasn’t a huge upshot in consumer adoption.
“I think we're just seeing more pragmatism, personally. That's the way I turned my approach to EVs — being pragmatic,” Campau said. “So I think the news cycle has kind of gone more pessimistic, and that's because it's not doing hockey stick growth. I mean, we had hockey stick growth for years, and everybody loves that … But now we're seeing more just measured, slow growth [and] we're seeing, actually, maturity.”
So every recent quarter has seen higher numbers of ZEVs added to the Canadian vehicle fleet. Quebec led the way with 28.4 per cent of its new vehicle registrations being ZEVs and British Columbia coming in second at 21.8 per cent. These two provinces offer purchase incentives but have separately announced they are changing the rules or phasing them out.
“I do think coast-to-coast Canada has more friendly policies and incentives for EVs both nationally and at the provincial level,” Campau noted.
From there, it’s a drop off, but Yukon remained third with 12 per cent of its vehicle sold being zero emissions. Prince Edward Island (8.7 per cent) and Ontario (7.8 per cent) round out the top five.
Campau also credited Canada’s economic picture as playing a role. “Canada's economy seems to have gotten to better footing more quickly, with much lower inflation more quickly than the U.S.,” he said. “This may be contributing to a bump from a more confident and less stressed consumer.”
He also credited a third factor for concern in the U.S.: The election that ultimately saw Donal Trump return for a second term and Republicans also taking the House of Representatives and the Senate.
“I think [this gave] consumers additional pause. Trump and [Kamala] Harris
seem so different, I think the U.S. consumer is concerned one side will mandate EVs, but the other might remove all federal support/ incentives, if not worse,” Campau said. “They are portrayed as so different, I think consumers are concerned the future is very different depending on who gets elected.”
The politicization doesn’t exist nearly as much in Canada as far as Johns can tell.
“Which gives us an advantage in Canada. And so people don't have to talk about it on the political spectrum. They can just talk about it whether they believe in it or not,” he said.
Just because someone doesn’t like a battery electric vehicle, they’re not seen as siding with one political party.
“OK, well, that's fine, but at least it's not because you're a Liberal or you're a Conservative or whatever like that,” Johns observed. “Because then that just gets nasty and it puts people in positions where they don't really belong.”
There are also legal differences in Canada compared to the U.S. — automakers can’t sell directly to consumers. They have to sell through a dealership in the U.S., meaning another step for EV makers to reach that market, one they don’t have to worry about in Canada.
A viable solution for many
While Canada is a geographically big country, much of the population lives in larger urban centres — Statistics Canada reported in 2021 that nearly three in four Canadians (73.7 per cent) lived in one of Canada's large urban centres.
With many people living in larger areas where much transportation isn’t needed on a regular basis, electric vehicles make sense, compared to those living in rural areas where long commutes are part of the lifestyle.
“It makes a lot more sense — shorter trips overall,” Campau said in an interview. “You're not putting on 70 or 80 kilometres a day like you might in the Prairies. If you're in Toronto, you're in a lot of rush hour traffic, same with Montreal. You're not putting the overall
kilometres on the vehicle in a day, and then you're going home and you can charge it.”
There isn’t enough of a roadblock for Johns to see the end of the road for electric vehicles.
“There's still a huge percentage of the population that still consider it as a viable option or plan to in the not-too-distant future,” he said in an interview with EV World
And growth is still there even though just two provinces offer incentives on top of the federal one.
He pointed to Ontario specifically, noting that even though there are lower percentage numbers there, the province’s population means that there is still a relatively large number of these vehicles out there. In other words, a small percentage of a big number is still a big number when compared to the rest of Canada.
“The interesting part about Ontario is they've always been that juggernaut. They've always been that sleeping juggernaut at times, because that's with no subsidies, with no real attention to Ontario. Because Quebec is doing their own thing and B.C.’s spending all the money as well — Ontario just chugged along and supported the whole growth of EVs without any subsidies.”
Indeed, S&P Global Mobility reported that while Quebec has 305,300 ZEVs on its road in 2024, Ontario is second with 185,200. B.C. is third at 173,900.
What’s the hold up?
It turns out that converting a continent of more than 300 million vehicles from combustion engines to batteries is an incredible undertaking, one that automakers were seemingly too ambitious to take on.
“They're companies that have no way, no chance to adapt. The only reason Tesla’s so competitive is because of the structural model,” Johns said. Even though they have dealerships to sell through, it’s still a Tesla-owned network. “They don't have the same legacy contracts, the same structural craziness.”
Imagine Stellantis, which has more than a dozen brands like
˝And I think, at the end of the day, we're more accepting in Canada of change. I don't think the Americans in general like change. So everything takes longer down there. ˝
So the boost in EV sales numbers this year could be attributed to the fact that consumers are trying to get their hands on a ZEV before it becomes more expensive.
“This is in the U.S., Canada, and everywhere else: When we've seen incentives go away, you see a bit of a pullback in the adoption of EVs. I think we're at a point, though, in Canada where it's kind of like ‘taking your hands off the patient,’ so to speak, and let's see if it runs by itself,” Campau said, adding that taking money away can have an effect. “I think people probably are trying to take advantage of it right now.”
The real interest for Campau is: Once we get into 2025, is Canada still growing its percentage of new vehicles that are ZEV or do numbers plateau like what was seen in the U.S. and stick at 11, 12 or 13 per cent.
“I think that will tell us a lot more about if the maturation of the electric vehicle has come to a point where it can support itself,” Campau said.
What’s next?
S&P Global Mobility is expecting ZEVs to account for 15.2 per cent of light duty vehicle sales in 2024, reaching nearly 267,000 units. Campau has often said he feels his own group is overly ambitious at times, but he agreed with their line of thinking. He doesn’t expect the annual number to come in less than 13 per cent.
At the end of the day, it’s about affordability. New vehicle affordability is already hard on consumers and ZEVs are at a higher price point, Campau noted. But that is starting to change as ICE prices rise at a faster pace than ZEVs.
Chrysler, Dodge, Jeep and Ram, trying to organize a shift to electrification and the headaches that must be taking place, Johns used as an example.
“You have [95 per cent) that are making money off all of this [ICE] and then you've got 5 per cent of it trying to move this massive ship — they'll be chipping away at that elephant for the next 50 years,” Johns said. “And I think, at the end of the day, we're more accepting in Canada of change. I don't think the Americans in general like change. So everything takes longer down there. But again, when they decide to move, boy, you can't stop the machine.”
Incentives
Incentives are being reduced in both Quebec and B.C., which Quebec said it will no longer need to incentivize buyers to buy zero-emission vehicles. Incentives for new EVs and fuel cell vehicles will drop from $7,000 this year to $4,000 next year and $2,000 in 2026 and unavailable in 2027. Plug-in hybrids will see incentives go from $5,000 to $2,000 to $1,000 before being eliminated. Used fully electrics will drop from $3,500 now to $2,000 next year and $1,000 in 2026 before no longer being available the following year.
The CleanBC Go Electric rebate provides up to $4,000 to qualifying zero-emission vehicles. The province dropped the maximum cost of qualifying vehicles earlier this year to $50,000 — from the previous $55,000.
“We are astonished and extremely disappointed by the announced changes to BC’s ZEV rebate program,” said Tim Reuss, president and CEO of the Canadian Automobile Dealers Association, in a statement.
“So ICE vehicles are coming up to a level closer to EVs because we've seen an increase in ICE vehicle prices over the past few years,” Campau observed “And so I think affordability is relative. They're not that much more expensive than an ICE, but it's not because their prices have come down by any means.”
This year, Ontario announced Honda is building a $15 billion electric vehicle battery plant next to its Alliston, Ontario, plant, which it will retool to produce EVs. Last year, Volkswagen announced plans to build a $7 billion battery plant in St. Thomas, Ontario. A year before that, Stellantis and South Korean battery maker LG Energy Solution announced they were building a largescale electric vehicle battery plant in Windsor, Ontario.
In Quebec, Swedish manufacturer Northvolt AB announced it was going to build a $7 billion gigafactory for electric vehicle batteries near Montreal by the end of 2026. Ford announced it was partnering with South Korean companies to a $1.2 billion manufacturing plant for electric vehicle battery material in the province.
Those are just some examples of EV production happening in Canada. But to support that work, it made sense to put 100 per cent of tariffs on Chinese-made electric vehicles, Johns said. The investment in those plants could go to waste if cheaper Chinese brands flood the Canadian market and Canadians buy those vehicles instead.
“They've got to give us time. At the end of the day, we're managing between a rock and a hard place. Because the U.S. market is moving so slowly out, it's crazy,” Johns said. “You see the domestic manufacturers, the CEOs, are all scrambling because their quarterly earnings are down, their profits are down. There's a massive structural transition happening.”
Hunter service equipment was ready for EVs before EVs were ready for service equipment.
Alignment systems
Tire changers
Wheel balancers
THE IMPORTANCE OF A HEALTHY USED EV MARKET
There’s hesitancy around used electric vehicles in Canada but it’s important to have a strong second-hand market
// By David Mayers
As Canada continues to embrace electric vehicles (EVs) as a critical part of its transition to a greener future, the conversation often revolves around brand new EVs. However, the used EV market is an equally vital piece of the puzzle.
While there’s enthusiasm for EVs overall, many Canadians remain hesitant to buy pre-owned versions. This reluctance stems from concerns about vehicle battery replacement, limited awareness of EV technology and range anxiety, concerns about recycling of EVs and inconsistent access to charging infrastructure.
Developing a robust used EV market is crucial to ensuring widespread adoption and achieving Canada's climate goals.
A 2023 survey by KPMG found that nearly 60 per cent of Canadians expressed concerns about EV battery degradation over
time, fearing diminished range and costly replacements. While EV batteries are designed to last for hundreds of thousands of kilometers, their performance can vary based on factors such as charging habits, environmental conditions and the vehicle model.
Although it’s true that the high voltage battery is the most expensive component of an electric vehicle, often representing 30 per cent to 50 per cent of its total cost, vehicle manufacturers have established excellent transferrable warranties.
Like any new vehicle, there will be some with early replacement just like a conventional ICE or driveline. In the Spring issue of EV World, I described a recent battery replacement in my 2016 Kia Soul EV. My vehicle was purchased as a used vehicle with under 85,000 km. When my battery failed it was covered completely by warranty. My vehicle now has more
˝Although the hesitancy of Canadians to purchase used electric vehicles is rooted in legitimate concerns, these challenges are surmountable.˝
than 145 km range which is comparable to when new.
Unfortunately, many Canadians are also unfamiliar with EV technology or how the range of a vehicle may fit their lifestyle and needs. A 2022 report by the Canadian Automobile Association (CAA) revealed that 44 per cent of Canadians felt they lacked sufficient knowledge about EVs to consider purchasing one.
For instance, older EV models may not support the latest fastcharging standards or have the same range capabilities as newer models. However, according to Statistics Canada, the average oneway commute in Canada is 22.8 km, which is well within the range of most EVs, even first-generation.
These perceived drawbacks can deter buyers who are unsure about how these limitations align with their lifestyle.
This knowledge gap is even more pronounced in the used market, where potential buyers may feel less confident navigating warranties, maintenance needs and compatibility with newer charging networks.
EVs have the potential to last longer than ICE vehicles, primarily due to their simpler mechanical design and reduced wear-and-tear on critical components. With proper care, modern EVs can surpass the lifespans of many ICE vehicles.
We are also concerned about what happens to our vehicles once they are no longer on the road. However, Canada is at the forefront of recycling EV batteries, with several companies and organizations actively involved. These companies are developing innovative methods to recover valuable materials like lithium, cobalt, nickel and manganese from used batteries.
Here several companies working in the area
■ Li-Cycle, located in Mississauga, Ontario, uses a hydrometallurgical process to recycle lithium-ion batteries, achieving high recovery rates of up to 95 per cent for materials like lithium, nickel and cobalt. They have recently expanded their operations across North America and launched a new hub in Kingston, Ontario.
■ Retriev Technologies in Trail, British Columbia, offers end-toend battery management services, including recycling lithium-ion batteries and safe disposal.
■ RecycLiCo Battery Materials, located in Surrey, British Columbia, offers closed-loop recycling using their proprietary RecycLiCo process, which is environmentally friendly and designed to recover up to 100 per cent of critical materials from EV batteries.
■ Electra Battery Materials Corporation in Temiskaming Shores, Ontario, is developing an integrated recycling and refining complex for EV batteries, with a focus on recovering cobalt, nickel and lithium.
■ Loop Industries in Montreal, Quebec, recycles plastic from EV battery casings, loop complements the EV ecosystem by managing non-metal components.
■ In addition, the National Research Council (NRC) and universities like the University of Toronto and McGill are contributing to research and development in EV battery recycling in combination with government programs, like the Zero Emission
Vehicle Infrastructure Program (ZEVIP).
Finally, we are still faced with a charging infrastructure that is insufficient in some regions to fully support EV adoption in Canada, especially outside major urban centers. The Canadian Infrastructure Bank reported in 2023 that while the number of public chargers had grown by 25 per cent in the past two years, gaps still exist in rural and remote areas.
Used EVs, which often have shorter ranges than newer models, may exacerbate these concerns. Without a reliable and widely accessible charging network, buyers may be reluctant to invest in vehicles that could limit their travel options. Luckily, his can often be addressed by assessing daily driving habits.
The good news from all this is there is progress being made on all fronts because a strong used EV market is important as we go forward. New EVs remain out of reach for many Canadians due to their high upfront costs.
According to Statistics Canada, the average price of a new EV in 2023 was over $60,000, significantly higher than the average cost of a new internal combustion engine vehicle. A thriving used EV market bridges this affordability gap, making EV ownership accessible to a broader demographic. This is especially important as Canada aims to phase out sales of new gasoline-powered vehicles by 2035 and transition entirely to zero-emission vehicles.
Second-hand markets play a critical role in familiarizing consumers with new technologies, as seen historically with hybrids and other vehicle innovations. A well-functioning used EV market supports the residual value of EVs, making them a more attractive option for new buyers and can serve as a stepping stone, allowing hesitant buyers to test the waters of electric mobility at a lower financial risk.
There are things we can still do though to address hesitancy and strengthen the used EV market. Canada must take proactive measures including a standardized system for evaluating and certifying the health of EV batteries, continuing to invest in charging infrastructure, particularly in rural and underserved areas, public education campaigns focusing on the benefits and practicality of used EVs and extending federal and provincial incentives to include the purchase of used EVs. Manufacturers should continue to support older technology and maintain effective warranty options for new vehicles.
Although the hesitancy of Canadians to purchase used electric vehicles is rooted in legitimate concerns, these challenges are surmountable. A thriving used EV market is a cornerstone of Canada’s transition to a sustainable transportation system. By addressing barriers through policy, education, and infrastructure investment, Canada can unlock the full potential of electric transportation.
David Mayers is chief executive officer at Environmental Motorworks, an innovative services company centred on providing hands-on EV and hybrid training to technicians and fleet operators in the automotive and heavy equipment sectors.
By The Numbers
Stats that put the North American automotive
16.5%
It’s the strongest showing yet for ZEVs in new vehicle registrations in Canada as 12.2% went to BEVs while 4.3% went to PHEVs.
S&P Global Mobility
$6,923
The average claims cost severity for EVs in Q3 2024, up almost $400 from Q2. The average severity for ICE vehicles was $5,615. Mitchell
54%
Millennials showed the strongest of choosing a PHEV for their next purchase, followed by Gen Z at 51%. Volvo
$7 Million
Canada’s investment to support the expansion of Project Arrow 2.0, which originally saw 55 Canadian companies build the made-in-Canada EV.
Government of Canada
109.4%
There has been greater BEV inventory reported with a year-over-year increase in listings showing new and used options.
AutoTrader
6
The U.S., Europe, and the U.K. are more than six times behind the number of charging ports needed to meet growing EV demand by 2030. Konnect and Gilbarco Veeder-Root
