2024 Update Coming Soon
Published- Sep 2022
Number Of Pages -120
The electric vehicle (EV) market in Canada is experiencing substantial growth, influenced by several key factors. These include government incentives, a rising awareness among consumers regarding the advantages of EVs, and an expanding network of EV charging stations.
In 2022, Canadian EV sales demonstrated a remarkable 200% year-over-year increase, constituting 5.6% of total new vehicle sales. This upward trajectory is anticipated to persist, with EV sales projected to represent 30% of all new vehicle purchases by 2030.
The Canadian government has been proactive in incentivizing EV adoption, offering a $5,000 rebate for new EV purchases and a $500 rebate for home EV charger installations. Additionally, provincial governments have introduced their own incentives, such as rebates, tax benefits, and access to HOV lanes.
Consumers are increasingly recognizing the merits of EVs, such as reduced fuel costs, diminished emissions, and enhanced performance, spurring a growing demand for these vehicles.
The number of public EV charging stations across Canada is rapidly expanding, easing the charging process for EV owners. The federal government has further committed to investing $1.5 billion in EV charging infrastructure over the next five years.
The burgeoning Canadian EV market yields various positive outcomes. It contributes to the reduction of greenhouse gas emissions and air pollution, fosters job creation in the EV sector, and financially benefits Canadian consumers by reducing fuel expenses and environmental footprints.
Key trends in the Canadian EV market encompass the rising popularity of electric SUVs and trucks, stimulated by the general trend favoring these vehicle types. Moreover, the affordability of EVs is on the rise, catering to mass-market buyers. Businesses are also embracing EVs as part of their sustainability strategies, further bolstering demand in the commercial sector.
The outlook for the Canadian EV market remains optimistic, driven by government backing, consumer enthusiasm, technological advancements, and the proliferation of charging infrastructure. In sum, Canada’s EV market displays growth potential and aligns well with the global shift toward electric mobility.
Canada is one of the regions with the highest average price of vehicles sold. With 1.6 Million vehicles sold every year, they can handle fast electrification mainly along the Southern Provinces where 95.4% of the electric vehicles are sold currently.
In 2020, due to Covid, there was an overall decrease of 1,800 vehicles compared to 2019 in electric vehicle sales in Canada. HEVs however grew in sales in 2020 compared to 2019.
Canada has diverse weather conditions across the country mainly due to the size of the country. Canada currently has a $600 Million investment under Zero-Emission Vehicle Awareness Initiative.
This will include coast to coast fast charging setups, along with subsidies upto $5000 for electric vehicle purchases as well as regular charging stations at destination spots. Canada has a progressive rate for EVs sales with 10% by 2025, 30% by 2030 and 100% by 2040; currently they are at 3.5%.
In the year 2020, the Canadian automobile industry saw a cumulative sale of 12,693 Battery Electric Vehicles which contributed to 3.34 percent of the total number of automotive sales in the country.
In the first 6 months of 2021, the automobile industry observed a steady increase in electric vehicle sales. In the month of January a total of 999 vehicles were sold which saw a steady increase to 1224 in the month of February.
The sales observed a steady trend in the next 2-3 months with a total 1558, 1637 and 1593 electric vehicles sold in the months of March, April and May respectively. The sales increased to 1781 in the month of June and then observed a significant decline to 1099 vehicles being sold in the month of July by the automobile industry.
At two of its Canadian operations, Stellantis will invest billions to enhance the manufacture of electric vehicles. The money comes from the budget that Stellantis allocated for new software and electric vehicles over the coming year as part of its effort to abandon internal combustion engines and achieve carbon neutrality by 2038.
Drivers using ridesharing services can get the Chevrolet Bolt EV for less money from General Motors. Uber’s Zero Emissions incentive is available to drivers of fully electric vehicles. Uber also revealed a trial programme for Uber+Transit in the Greater Toronto Area. Uber will recommend a combined route that is both practical and reasonably priced by taking into account the availability of UberX and the transit schedules.
Customers who purchase or lease ZEV vehicles can take advantage of point-of-sale incentives through the iZEV Programme. Only the vehicles listed are qualified for incentives if they are bought or leased on or after the eligibility date for a period of at least 12 months.
Two degrees of incentives exist: Longer-range plug-in hybrids, hydrogen fuel cells, and battery-electric cars can all receive up to $5,000 in grants. Longer-range plug-in cars have an electric range of at least 50 km. Shorter range plug-in hybrid electric vehicles, which have an electric range under 50 km, are eligible for up to $2,500.
Canada announced a $170 CAD per tonne of CO2 carbon price cap by 2030 and will reach there by increments of $10-15 yearly. It is currently at $40 per tonne. This will affect fuel prices as taxes will be paid at exploration, production, transportation, and refining with the final expense being borne by the consumer. This will cause an increase in sales of electrified vehicles as running costs will be lesser and taxation will also be at a lower rate.
In addition to this, Canada’s efforts to combat climate change scored a major victory after the country’s top court ruled that Prime Minister Justin Trudeau’s national carbon tax is constitutional.
Canada is investing $2.75 Billion from 2021-2026 for electrification of public transport. This is included in the $15 Billion investment in place for electrification of transport and decreasing emissions. There is an added $1.5 Billion on top of that by Canada Infrastructure Bank to develop charging infrastructure for the buses.
Canada’s public bus fleet size is 15,000 currently and the plan is to introduce 5,000 electric buses which is 33% of the overall fleet. GreenPower, Lion Electrique/Lion Electric, New Flyer ,and Nova Bus are some of the firms that will benefit from this policy
Prince Edward Island is seen to be increasing the province’s electric school bus fleet with a new order of 35 LionC school buses from neighbouring Quebec-based OEM, Lion Electric. The new electric fleet will join the island province’s 12 existing LionC school buses, which were acquired last year and began service in early 2021.
In addition, Lion Electric will provide 35 Level 2 chargers to help PEI build out its charging infrastructure network.
Halifax Transit will add 60 electric buses to its transit fleet and the estimated cost is $112 million. Manufacturing of these buses is set to begin at the transit centre next year, with 37 buses currently on their way and seven more set to arrive in 2022.
Halifax regional council last year approved a plan to buy 210 electric buses in order to electrify more than half of its fleet by 2028.
Ottawa is planning to convert its entire fleet to electric buses in 15 years. The plan includes phasing into service 450 battery electric buses by 2027, with its entire fleet — currently 939 buses — converted to electric by 2036.
There are about 6,167 EV charging points across Europe. Out of which about 1,035 are fast charging points and the rest are Level 1, 2 & 3 charging points.
EV charging infrastructure companies are hit severely by chip shortage as they are dependent on chip technology and to keep the momentum of launching public charging stations across the country.
Electrify Canada is adding 68 new charging stations across the country over the next four and half years. The brand will operate in more than 100 different locations for a total of 500 chargers across the country.
Greenlots, ChargePoint, EV Connect and FLO have enabled roaming access across their networks of 54,000 chargers in Canada and the United States. EV fleet operators and drivers are expected to benefitted from this move.
Mercedes’ Me Charge platform will give drivers of the EQS and the upcoming EQ vehicles, access to more than 4,900 public charging ports run by ChargePoint, FLO and other charging providers in Canada. It will also provide access to additional 2,400 semi-public ports on the ChargePoint network.
Canada Electric Vehicle Market is estimated at $xx Billion in 2023. The Canadian EV battery market alone is estimated at $XX Billion.
In 2020, Toyota Prius PHEV, Tesla Model 3, and Hyundai Ioniq were the top selling EVs in Canada. Chevrolet Bolt EV, Volkswagen ID4, Nissan Ariya and Ford Mustang Mach E are some of the upcoming vehicles in 2021 for the Canadian Market
The automotive sale dropped as high as 69% during the Q1 sales of 2020 with a comparatively large drop observed in the month of March. When compared to the other brands only GMC was able to observe a raise in their EV sales during this period. Statistically, the Q3 of 2020 proved to be profitable for the industry.
During this period, Zero-emission vehicle (ZEV) sales saw significant gains with 18,771 new vehicles registered across Canada between July and September which was more than twice the 9,069 vehicles sold in the previous quarter, consists of 67.1 percent battery electric vehicles and 32.9 percent plug-in hybrid vehicles.
The 18,771 sales reported in Q3 represents a 3.7 per cent market share of all vehicles purchased in the quarter, a significant increase from the 3.3 per cent seen in the previous quarter and the 3.5 per cent during the same period in 2019.
Montreal’s new electrification plan is valued at $885 million. The strategy includes 30 long-range, slow-charging electric public buses and an unspecified number of mid-range electric buses; upgrades to bus depots to allow for more fleet charging; adding 2,100 Bixi e-bikes; 250 electric taxis, 600 new charging stations and initiatives like giving electric vehicles priority parking in metered areas, transitioning the municipal vehicle fleet to 47% electric by 2030 and supporting business and multi-unit residential buildings to acquire charging stations.
While, in the near term, demand for EVs appears to be quite strong, the same cannot be said for their supply. The global shortage of semiconductor chips has contributed to a significant slowdown in the manufacture of electronics and motor vehicles. Electric vehicles affected include Tesla, Ford, Mercedes Benz, and Nissan. Moreover, it is uncertain how long the chip shortage will dampen vehicle production.
Memorandums of Understanding with Volkswagen AG and Mercedes-Benz AG, two of the top German automakers, were announced by the minister of innovation, science, and industry.
These agreements will strengthen Canada’s partnership with two cutting-edge global players in a variety of industries, support the country’s position as a world leader in the production of batteries and electric vehicles, and help make Canada an attractive investment destination.
The Volkswagen deal focuses on strengthening collaboration in areas such as cathode active material development, essential mineral supply, and sustainable battery manufacture. It also focuses on establishing a Canadian office for PowerCo, Volkswagen’s newly founded battery company.
The Mercedes-Benz agreement focuses on enhancing collaboration with Canadian businesses along the supply chains for electric vehicles and batteries, supporting the establishment of an environmentally, socially, and politically responsible critical mineral supply chain in Canada, collaborating in research and development, and identifying potential investments in Canada.
EV adoption-spurring nonprofit Plug’n Drive and Uber Canada have formed a partnership. In addition to hosting opportunities for drivers to take test drives, Plug’n Drive will produce and provide seminars. Drivers will get the chance to learn about the advantages of switching from petrol to electric and the overall cost of owning an EV as a result.
Natural Resources Canada is contributing to the initiatives of Plug’n Drive to raise awareness, knowledge, and confidence in EVs for ridesharing and delivery.
Rideshare drivers who use the Uber platform may now sign up to rent Teslas through Hertz on a weekly basis in Toronto, Vancouver, and Montreal thanks to Uber’s expansion of its collaboration with Hertz. To provide discounts on home charging options, Wallbox and FLO have partnered with Uber Canada.
Canadian electric vehicles have seen exponential growth in recent years, and a number of innovative partnerships have been formed to help drive this growth.
One of the most noteworthy recent partnerships in the Canadian electric vehicle industry is between Hyundai and Kia. Hyundai and Kia created a joint venture in 2020 to produce electric vehicles in Canada.
Hyundai is one of the leaders in electric vehicle production, and the joint venture will bring the production of their electric vehicles to Canada. The two companies are also planning to launch an electric car subscription service, which will allow customers to easily lease or purchase electric vehicles without having to purchase them outright.
In addition, Ford and Volkswagen recently announced a collaboration to develop a new electric vehicle platform. The platform will be designed to produce electric cars that are more efficient and have better performance. This collaboration will give Ford and Volkswagen the ability to leverage each other’s technologies and help create more affordable electric vehicles for Canadian consumers.
The Government of Canada has also been a part of many of these partnerships. The government has invested in electric vehicle infrastructure and in research and development for electric vehicles.
They have also provided financial incentives, such as the electric vehicle purchase incentives and the electric vehicle infrastructure investment program, which has helped make electric vehicles more accessible and affordable for Canadians.
Finally, numerous partnerships between electric vehicle companies and ride-sharing services have been formed. Companies such as Uber, Lyft, and Didi Chuxing have been partnering with electric vehicle companies to provide electric vehicle options for riders. These partnerships are helping to make electric vehicles more visible and accessible, while also helping to reduce emissions.
In conclusion, Canadian electric vehicles have seen many innovative partnerships in recent years. These partnerships are helping to make electric vehicles more accessible and affordable, and they are leading to more efficient and innovative vehicles.
With an ambition of driving 100% new passenger vehicles on the road by 2035, The Canadian automotive market is diving into more plans for developing EV ecosystems.
The Canadian electric vehicle (EV) market is growing rapidly, driven by a number of factors, including government incentives, increasing consumer awareness of the benefits of EVs, and the expanding availability of EV charging infrastructure.
The number of public EV chargers in Canada is increasing rapidly, making it easier for EV drivers to charge their vehicles. The federal government has also announced a plan to invest $1.5 billion in EV charging infrastructure over the next five years
In 2022, EV sales in Canada increased by 200% year-over-year, accounting for 5.6% of all new vehicle sales. This growth is expected to continue, with EV sales projected to reach 30% of all new vehicle sales by 2030.
The number of public EV chargers in Canada is increasing rapidly, making it easier for EV drivers to charge their vehicles. The federal government has also announced a plan to invest $1.5 billion in EV charging infrastructure over the next five years.
Ultium Canada, a joint venture between General Motors and LG Chem, is scheduled to begin production at its new EV battery plant in Ontario in 2023. The plant will have an annual capacity of 50 gigawatt-hours, making it one of the largest EV battery plants in North America.
According to a report by Deloitte, the Canadian EV market is expected to grow at a compound annual growth rate (CAGR) of 25% from 2022 to 2030. This growth will be driven by government incentives, increasing consumer demand, and the expanding availability of EV charging infrastructure.
New EV applications are being developed all the time, such as electric school buses, electric delivery trucks, and electric garbage trucks. These new applications will create new opportunities for the EV market in Canada.
Autonomous EVs are self-driving EVs. They are expected to play a major role in the future of transportation, and they will also have an impact on the EV market. Autonomous EVs could be used to provide ride-hailing services or delivery services. They could also be used for personal transportation.
Technological advancements in EV batteries and other components are making EVs more efficient and affordable.
With the help of BrightDrop, FedEx Express Canada launched its first 50 electric vehicles. FedEx’s plan to convert its complete parcel pickup and delivery (PUD) fleet to all-electric, zero-tailpipe emissions vehicles is taking a significant step forward with the addition of BrightDrop’s electric vans to the Canadian FedEx fleet.
50 electric vehicles (EVs) will make up the first fleet, which will provide service to Surrey, Toronto, and Montreal. As more charging infrastructure is put in place at FedEx stations around the country, FedEx Express Canada intends to increase the size of its EV fleet. With an estimated range of up to 400 kilometres on a full charge, the Zevo 600, powered by General Motors’ (GM) Ultium Platform, is intended for last-mile deliveries.
These 50 EVs are a part of a bigger deal between FedEx and BrightDrop that will see FedEx integrating 2,500 total vehicles across FedEx operations in the upcoming years, including more than 400 vehicles that are already in use in Southern California.
The 80 charging stations that the business has already deployed in these three EV launch markets are part of the charging infrastructure that FedEx is putting in place across its Canadian facilities to accommodate the new vehicle technology.
FedEx Express Canada is happy to contribute to the company’s efforts to achieve carbon-neutral operations on a worldwide scale. Canada is demonstrating how it is assisting in the development of more sustainable solutions by working with businesses like BrightDrop that are doing so locally in their own backyard.
These light commercial vehicles, which are built in Canada, aid FedEx Express, a division of FedEx Corp., one of the biggest express transportation firms in the world, in its transition to an all-electric delivery fleet. 50% of the company’s global PUD vehicle acquisitions are expected to be electric. The Zevo 600s are being produced by BrightDrop at GM’s CAMI Assembly facility in Ontario.
The first significant EV factory in Canada was created at CAMI thanks to a nearly one billion Canadian dollar investment from GM. After a seven-month retooling, CAMI reopened with the first Zevo 600 leaving the production line, the quickest plant conversion in GM history. FedEx is a significant partner in their effort to lower delivery-related carbon emissions.
FedEx is demonstrating to the world how the introduction of electric cars can help accomplish ambitious environmental goals and enhance the communities in which people live and work as the initial client to deploy Zevos in the United States and Canada. FedEx Corp. is attempting to achieve that goal, in part because of regional initiatives led by FedEx Express Canada.
FedEx Express Canada has been working with others to develop alternative methods of reducing its environmental impact in crowded urban areas with the aim of bringing these innovations to a global scale. With over 40 electric cargo bikes operating in British Columbia, Alberta, Ontario, and Quebec, Canada boasts one of the largest fleets of e-cargo bikes in the FedEx global network.
The Ford F-150 Lightning is an electric version of Ford’s popular F-150 pickup truck. It has a range of up to 580 kilometers and can tow up to 10,000 pounds. The F-150 Lightning is available now in Canada.
The Chevrolet Silverado EV is an electric version of Chevrolet’s popular Silverado pickup truck. It has a range of up to 664 kilometers and can tow up to 10,000 pounds. The Silverado EV is expected to be available in Canada in early 2023.
The Ram 1500 EV is an electric version of Ram’s popular 1500 pickup truck. It has a range of up to 512 kilometers and can tow up to 8,000 pounds. The Ram 1500 EV is expected to be available in Canada in late 2023.
The Hyundai IONIQ 5 is a crossover SUV with a range of up to 481 kilometers. It is known for its fast charging capabilities and its spacious interior. The IONIQ 5 is available now in Canada.
The Kia EV6 is a crossover SUV with a range of up to 483 kilometers. It is similar to the IONIQ 5 in terms of performance and features. The EV6 is available now in Canada.
The Toyota bZ4X is an electric SUV that is jointly developed by Toyota and Subaru. It is expected to be available in Canada in early 2023.
The Subaru Solterra is an electric SUV that is jointly developed by Subaru and Toyota. It is expected to be available in Canada in early 2023.
The Nissan Ariya is an electric crossover SUV with a range of up to 500 kilometers. It is expected to be available in Canada in early 2023.
The Volkswagen ID. Buzz is an electric version of the iconic Volkswagen Bus. It is expected to be available in Canada in late 2023.
In 2020, 39,000 BEVs were sold and 15,000 PHEVs were sold. Tesla held the pole position followed by Hyundai, Toyota and Nissan. The market will be influenced by the new launches in the USA over the next 3 years as well as improving infrastructure for EVs. The OEM to beat will be Tesla but the market share of Tesla will decrease in 2026 compared to 2021.
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