EV Sales: How are the Carmakers Dealing with It?

The latest headlines about the EV that might be trending right now may give an impression to you and also anyone that this market is headed for a massive crash. However, the new EV sales data shows that the rate of electric vehicle sales is still growing in Canada. The best part is that they have gone forward and hit a record high. This is because according to Statistics Canada, more than 65,000 battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) were effectively registered in the second quarter of this year.

This is known to be equal to 12.9 percent of all the new vehicle registrations that have come in. Over the same period which was around five years ago, the BEVs and PHEVs made up for just 3.4 percent. This means that the trend has not been entirely linear. However, it’s clear sales are known to be still growing, although it is known to be perhaps not as quickly as it had been expected. This is because Canadians now need to be assured that buying an EV is good and right for them.

However, Canadians are re-considering and re-thinking their decision with accordance to buying the EV and its designated vehicles. This is because they are quite costly and apart from that, one has to seperate the costs especially in association with it. Therefore, a lot of thought needs to be made as a consumer and also as a manufacturer.

What are the Benefits of Buying an EV?

The benefits of buying an EV are many. Below listed are the most important points that you must keep in mind if you are thinking of buying an EV:

i. Lower fuel costs.

ii. Reduced greenhouse gas emissions.

iii. Decreased rate of dependence on fossil fuels.

iv. Quieter range of operation.

v. Fewer moving parts that are leading to less maintenance.

vi. Potential tax incentives and rebates

vii. Enhanced energy efficiency

viii. Improved performance and acceleration

ix. Eligibility for HOV lane access

x. Increased home energy storage capabilities with compatible models

What are Carmakers Thinking About Manufacturing the EV Vehicles?

According to what has come forward recently the carmakers were investing billions of dollars. This was exclusively done into their electric lineups, thus pledging they would soon stop building gas-powered cars. However, customers are not going fully electric as quickly as it was predicted. This is why it has hit many companies which are now making adjustments to better meet the demand thoroughly.

Apart from that, General Motors has scaled back its electric vehicle production this year. News have been said that it will build an estimated 50,000 fewer EVs. Ford is also shifting its strategy, and thus, stalling plans for an electric SUV and therefore, building a hybrid version instead. However, these companies are still losing money on EVs. Disregarding all of that, still the carmakers insist that they are committed to the cause.

“The thought of changing to electrical propulsion after decades of driving an internal combustion engine is a big step,” Volvo Cars CEO Jim Rowan said earlier this month. This statement noted that the company will pull back slightly on its EV goals. “We will be ready to go fully electric this decade, but if the market infrastructure and customer acceptance is not quite there we can allow that to take a few more years.”

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For those customers who are hoping overseas carmakers like China’s BYD would bring in cheaper EV models to North America, then that may also take a little longer. Last month, the federal government had slapped 100 percent tariffs on Chinese-made EVs. Thus, this move is meant to give companies time to build up domestic EV manufacturing. It has also been brought forward to protect the billions of dollars Ottawa has invested in the supply chain.

“We are building an EV industry here. We have all of the ingredients for Canada to succeed in this sector,” said Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association. “I’m convinced we’ll continue to see a growth in EV adoption, but we do have to address some of those barriers to demand.”

What has the Federal Government Bought Regarding the EV Vehicles?

The federal government has introduced new regulations which are meant to speed up the transition to electric. This is good as it will be pushing carmakers to build enough EVs to meet the demand. The policy says by 2026, 20 percent of new cars sold should be zero emission. The target jumps to 60 percent by 2030, and 100 percent by 2035.

However, the carmakers have said that those goals will not be achievable unless Ottawa does more in order to boost the charging infrastructure and thus, address the EV affordability. Thus, to meet this, the federal government has offered a lot of financial incentives since 2019. The program offers a $5,000 toward the purchase of an eligible zero-emission vehicle.

Some provinces have their own incentives. Thus, these offer additional savings and on top of that certain federal rebates too will be given. Quebec by far is the most generous at a rate of $7,000. Thus, it has clearly made a difference as EV adoption in the province is soaring. However, the subsidies will decrease which will be starting next year before being phased out completely. There are also incentives available in the Atlantic provinces, Manitoba, B.C. and the Yukon.