The Canadian automotive industry faced significant challenges in 2020 due to the ongoing COVID-19 pandemic. The industry saw a decline in production and sales, as well as a shift in consumer demand towards electric and hybrid vehicles. Despite these challenges, the industry has continued to innovate and make progress in the development of electric vehicles (EVs) and advanced driver-assistance systems (ADAS).
Production and Sales
In terms of production, according to data from the Canadian Automotive Manufacturers’ Association (CAMA), vehicle production in Canada fell by 23.8% in 2020, with a total of 1.4 million units produced. This decline was primarily due to the shutdowns and slowdowns at assembly plants as a result of the pandemic. This is a significant decrease compared to 2019, where 2.4 million units were produced.
In terms of sales, the Canadian automotive market also saw a decline in 2020, with a total of 1.8 million vehicles sold, a decrease of 15.7% from the previous year. This is a significant decrease compared to 2019, where 2.2 million vehicles were sold. The decline in sales was primarily due to the impact of the COVID-19 pandemic on consumer demand and dealership operations.
As for the breakdown of vehicles, in 2020, Light trucks continue to be the most popular type of vehicle sold in Canada, with a market share of 63.9%. Passenger cars had a market share of 36.1%. Electric vehicles and hybrids represented 1.5% of the total sales in 2020, which is a small but growing segment of the market.
Investment for New Energy Vehicles
The Canadian government has also announced plans to support the development of electric and other new energy vehicles.
in 2019, the Federal Government announced the $130 million Zero-Emission Vehicle Infrastructure Program (ZEVIP) to support the installation of electric vehicle charging stations across Canada. The program provides funding for the installation of electric vehicle charging stations in various settings, including workplace, multi-unit residential buildings, and public places.
In 2020, the Federal Government also announced the $5 billion Low Carbon Economy Fund to support provinces and territories in their efforts to reduce greenhouse gas emissions and fight climate change. The fund is intended to support a wide range of clean energy projects, including electric vehicle infrastructure, renewable energy, energy efficiency, and more.
The iZEV (Incentive for Zero-Emission Vehicles) program continues to provide incentives for the purchase or lease of new battery electric, hydrogen fuel cell, and longer-range plug-in hybrid vehicles.
The battery electric vehicles (EVs) eligible for the iZEV program are vehicles that are powered solely by electricity and have a battery capacity of at least 15 kilowatt-hours (kWh). Hydrogen fuel cell vehicles eligible for the iZEV program are vehicles that are powered by hydrogen fuel cells and have a range of at least 40 kilometers using the New European Driving Cycle (NEDC) test procedure.
Plug-in hybrid electric vehicles (PHEVs) eligible for the iZEV program are vehicles that have a battery capacity of at least 15 kWh and an all-electric range of at least 35 kilometers using the NEDC test procedure.
Additionally, several provinces, like Quebec and British Columbia, have their own EV incentive program to encourage citizens to buy electric vehicles.
EV Sales
According to data from FleetCarma, an electric vehicle research firm, Electric vehicle (EV) sales in Canada in 2020 were around 26,437 units, which represents 1.5% of the total vehicle sales in the country. This represents an increase from 2019, when EV sales were around 17,704 units, or 0.8% of total vehicle sales. It’s a significant increase, but still a small percentage of the total market share.
In terms of production, there were no major EV production facilities in Canada in 2020. Canadian automakers have focused on traditional internal combustion engines (ICE) vehicles, while most of the EV models sold in Canada were imported from other countries.
In terms of customer demand, there has been a shift in consumer demand towards electric and hybrid vehicles. The iZEV program has helped to increase the market share of electric vehicles in Canada from 0.5% in 2019 to 1.5% in 2020. Additionally, increasing concerns about the environment and the desire for more fuel-efficient vehicles have led to a growing demand for EVs.
Summary
In summary, the Canadian automotive industry faced significant challenges in 2020 due to the ongoing COVID-19 pandemic, resulting in a decline in production and sales. Despite these challenges, the industry has continued to innovate and make progress in the development of electric vehicles and advanced driver-assistance systems. The industry also saw a shift in consumer demand towards electric and hybrid vehicles and the Canadian government has been providing support to encourage the adoption of these vehicles.
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