DROPPING INCENTIVES, SLOWING SALES AS AUTOMAKERS CHART A NEW PLAN
TRACKING EV MOMENTUM +
PROBLEMATIC MESSAGING
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LETTING EVS GROW ON THEIR OWN
The electric vehicle market has been on a remarkable journey, driven by technological advancements, consumer interest and — until recently — significant government incentives.
But as we look to the future, a critical question arises: Can EVs sustain themselves without incentives?
These federal and provincial incentives have, to a degree, acted as a life support system, breathing energy into the EV market and encouraging adoption.
So the question now is: Can the patient breathe on its own?
Purchase incentives have played a pivotal role in making EVs more attractive to consumers. Incentives have lowered the financial barriers to entry, making EVs more accessible to a broader range of consumers.
However, the landscape is evolving. As EV technology matures and consumer awareness grows, the reliance on government incentives is diminishing. The federal rebates have paused, B.C. changed the threshold and Quebec is phasing them out over the next couple of years.
Yet, the transition to a self-sustaining EV market is not without challenges. Infrastructure remains a significant barrier, along with range anxiety and high prices.
While fully electric vehicles are gaining traction, plug-in hybrid electric vehicles are emerging as a crucial bridge in the transition. PHEVs offer a compelling compromise, combining electric power for daily commutes with a gas engine backup for longer trips. This flexibility addresses consumer concerns about range anxiety and infrastructure limitations.
Matt Girgis, managing director of Volvo Canada, emphasized the growing popularity of PHEVs. "We're seeing that the plug-in hybrids are resonating very well with Canadians," he noted, pointing to a 75 per cent sales increase from 2023 to 2024 for Volvo.
This surge demonstrates a growing consumer appetite for a more flexible approach to electrification.
Elias Al-Achhab, chief operating officer of Kia Canada, echoed this sentiment, highlighting the role of PHEVs in easing the transition to fully electric vehicles.
"Most people will buy a plug-in hybrid because they're worried about lasting on a full charge. What they will find is that on a plug-in hybrid that only does 50 kilometres of range before the gas engine kicks in, they never end up using the gas engine," he explained.
This discovery often leads consumers to realize that electric vehicles with longer ranges are more than sufficient for their needs.
As the automotive industry continues to evolve, the growing popularity of PHEVs suggests that they can serve as a happy medium, helping consumers gradually embrace electrification while maintaining the comfort and flexibility they've come to expect from their vehicles. The future of driving is electric, but it's also flexible, accessible and maybe even more exciting than ever before.
So while government incentives have been crucial in jumpstarting the EV market, the industry is — and must — gradually moving towards self-sufficiency. The rise of PHEVs provides a strategic bridge, easing the transition and addressing consumer concerns.
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As technology advances and infrastructure improves, the patient may soon indeed be able to breathe on its own, sustaining growth and driving the future of mobility.
Adam Malik Managing Editor, EV World
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CANADIAN ZEV SALES SURGE THEN PLUMMET
ZERO-EMISSION VEHICLE (ZEV) sales in Canada hit record highs in late 2024, according to S&P Global Mobility’s latest Canadian Automotive Insights report. But the momentum faltered as government incentives were reduced in early 2025.
In the fourth quarter of 2024, ZEVs reached a national penetration rate of 18.9 per cent, up from 16.5 per cent in the previous quarter. Battery electric vehicles (BEVs) led the way, accounting for 11.4 per cent of all vehicles sold last year, compared to 8.8 per cent in 2023. Quebec led adoption, with ZEVs making up 42 per cent of new vehicle registrations in Q4, representing 60 per cent of all national ZEV sales.
However, a sharp decline followed in January 2025 after Quebec’s EV rebate dropped from $7,000 to $4,000. Early data shows BEV sales in the province plummeted by 65 per cent from December 2024, while national BEV sales dropped 48.3 per cent. The decline was particularly severe for Tesla and Chevrolet, whose EV sales fell by over 72 per cent and 65 per cent, respectively.
The report also highlighted the looming threat of U.S. tariffs on Canadian and Mexican auto imports, which could disrupt North American supply chains and increase vehicle costs. If implemented, the 25 per cent tariff being considered by the U.S. government could impact Canadian exports, which accounted for 7.6 per cent of U.S. vehicle imports in 2024.
With incentives waning and trade tensions rising, Canada’s ZEV market faces a challenging road ahead, S&P noted.
SHUTTERING GREEN EV PROGRAM LEAVES SOME SEEING RED
CANADA’S INCENTIVES FOR ZERO-EMISSION Vehicles (iZEV) program paused on March 31, but concerns were growing about funds running out before that date. The program has been instrumental in boosting EV sales, but industry groups are worried that halting the incentives could undermine the government’s ambitious zero-emission vehicle (ZEV) targets.
Tim Reuss, president of the Canadian Automobile Dealers Association (CADA), called the decision “frustrating,” citing the government’s failure to follow through with the necessary infrastructure and support for EV adoption. He and other industry leaders argue that the federal government’s ZEV mandates cannot succeed without continued incentives.
In a press conference held in January, CADA, Global Automakers of Canada, and the Canadian Vehicle Manufacturers’ Association (CVMA) called for the end of federal EV sales mandates, citing the upcoming pause of the iZEV program and lack of charging infrastructure.
The program, which launched in 2019, has led to a significant rise in ZEV market share, reaching 14.2 per cent in 2024. Over 546,000 vehicles have been purchased through iZEV, contributing to Canada’s transition to net-zero emissions. However, with funding running out and no stopgap funding included in the recent economic statement, critics fear the program’s pause will stall progress.
Environmental Defence’s Nate Wallace emphasized the need for renewed support to maintain momentum in EV adoption, particularly as the nation faces potential federal elections.
WHY THERE’S GROWING DEMAND FOR INDEPENDENT EV REPAIR
TESLA’S DOMINANCE IN THE electric vehicle (EV) market has led to both success and challenges, particularly in customer service and maintenance. While Tesla holds the top market share in North America, its owners often face long wait times and poor service,
creating opportunities for the automotive aftermarket.
Carolyn Coquillette, owner of Earthling Automotive and founder of Shop-Ware, noted that Tesla’s market dominance has allowed the aftermarket to specialize in one platform, particularly as EVs, such as the Model 3 and Model Y, begin to age. The aftermarket is poised for growth as these cars, now five years or older, require more maintenance.
However, Tesla’s rapid production has outpaced its ability to provide effective service. Many customers are frustrated by delays in service appointments, the unavailability of parts and poor dealership experiences. This dissatisfaction, Coquillette says, is a significant opportunity for the aftermarket sector, which has thrived as dealerships fail to meet customer expectations.
As the market for EVs grows, especially with predictions that EVs will outpace hybrids by 2030, the aftermarket is preparing for increased demand, capitalizing on Tesla’s service shortcomings.
OWNERS LOVE EVS, BUT HAVE IRRITANTS
A NEW SURVEY SUGGESTS British Columbia’s electric vehicle owners appreciate the cost savings of driving an EV but remain frustrated by the lack of reliable public charging options.
The survey, conducted by the Canadian Automobile Association (CAA) and the British Columbia Automobile Association (BCAA), polled more than 5,100 EV owners. It found that 97 per cent of respondents believe fuelling an EV is more affordable than a gas vehicle, while 90 per cent say maintenance costs are lower.
However, charging infrastructure remains a concern. Nearly 70 per cent of EV owners in B.C. report dissatisfaction with the availability of public fast chargers. This issue is particularly pronounced in winter, with close to 60 per cent of EV drivers opting for a gas vehicle in extremely cold weather due to concerns about battery range.
“Our survey shows that people are happy with their EV because they are cheaper to operate and easier to maintain,” said Shawn Pettipas, BCAA’s director of corporate purpose and mobility marketing. “But it also shows there’s room for improvement when
it comes to accessing public fast chargers and increasing confidence with battery range in the cold.”
Despite public charging concerns, most EV owners charge at home, with 83 per cent having a home fast charger. The majority of their travel stays within 100 kms of home, well below the average EV range of over 400 kms.
HOW
BIDIRECTIONAL CHARGING COULD MAKE EVS KEY PLAYERS IN THE ENERGY GRID
THE RISE OF ELECTRIC VEHICLES is set to revolutionize energy management through vehicle-to-grid (V2G) technology, according to a new report by IDTechEx.
V2G enables EVs to transfer energy back to the grid, turning them into mobile power sources. This innovation is part of a broader vehicle-to-everything (V2X) trend, which includes vehicle-to-home (V2H) and vehicle-to-load (V2L) capabilities.
Several EV models, such as the Nissan Leaf, Volkswagen ID.4 and Ford F-150 Lightning, already support V2G, while others like the Hyundai Ioniq 5 and Kia EV6 enable V2L, allowing vehicles to power external devices. Automakers and grid operators are increasingly exploring these technologies to enhance grid resilience, reduce energy costs and provide backup power, the report notes.
V2G systems use either direct current (DC) or alternating current (AC) setups. DC-based systems, which place the inverter in the charging station, offer higher discharge rates but require costly infrastructure. AC systems integrate the inverter into the vehicle, reducing infrastructure costs but limiting power output.
The adoption of V2G is expected to grow, with bidirectionalcapable EVs in the U.S. projected to rise from five per cent in 2023 to over 20 per cent by 2028. Heavy-duty EVs, such as school buses and freight vehicles, are also emerging as key players in grid support.
Widespread adoption will depend on collaboration between automakers and energy providers to standardize infrastructure and pricing models, paving the way for a more resilient and flexible power grid.
HOW MANY CANADIANS ARE EV READY
WHILE HALF OF CANADIANS are open to electric vehicles, only one in five consider themselves ready to make the switch, according to a new study by Toronto-based ad tech firm mplus.
The study, which analyzes consumer-provided data to help advertisers target audiences, found that 50 per cent of Canadian auto shoppers are “EV Curious,” while 20 per cent are “EV Ready.” Another 30 per cent remain skeptical about EVs.
“‘EV Ready’ audiences prioritize sustainability, technology and
performance, while ‘EV Curious’ buyers focus more on cost and charging accessibility,” said Will Oatley, mplus co-founder.
Consumer preferences vary by province. In British Columbia, 45 per cent of “EV Ready” respondents were most interested in SUVs, while Saskatchewan respondents showed a greater preference for trucks. The study aims to help automakers tailor their EV marketing by region.
The research also tracks consumer readiness by purchase timelines, segmenting buyers into those likely to purchase within 90, 180, or 360 days. Oatley noted that environmental concerns have dipped slightly across all segments compared to previous research.
“The Canadian EV market was previously underserved in terms of consumer insights,” Oatley said. “This study allows automakers to engage EV-ready consumers at the right moment in their buying journey.”
WHERE INTEREST IS GROWING AS EVS TAIL OFF
WHILE ELECTRIC VEHICLE (EV) interest grew in Canada in 2024, widespread adoption remains limited, according to new data from AutoTrader.
The platform reported a nine per cent increase in search interest for EVs, yet they still account for only eight per cent of total vehicle searches. Despite this rise in curiosity, purchase consideration for EVs has declined for the second consecutive year. A March 2024 AutoTrader study found that just 46 per cent of non-EV owners were open to buying an EV, down from 56 per cent in 2023.
Regional trends show a strong link between EV interest and government incentives. British Columbia and Quebec lead the country in EV searches, with EVs making up 11 per cent and 10 per cent of total vehicle searches, respectively. In Quebec, the demand for EVs has surged, driven by a $7,000 rebate available until last year, which will drop to $4,000 in 2025 and be phased out by 2027.
Meanwhile, hybrid vehicles are gaining popularity, with 62
per cent of those considering an EV now eyeing hybrid electric vehicles (HEVs) and 60 per cent considering plug-in hybrids (PHEVs). This shift is reflected in a 12 per cent year-overyear increase in listings for electric and hybrid vehicles on the platform.
EVS APPEAR TO BE MORE ACCIDENT PRONE
NEW INSURANCE DATA SUGGESTS electric vehicles (EVs) may be more accident-prone due to their rapid acceleration capabilities. The findings, sourced from LexisNexis and analyzed by Green Car Reports, highlight concerns that the swift torque and instant acceleration of many EVs could lead to more accidents compared to slower vehicles. EVs are known for their quick zero-to-60 mph times, rivaling or even surpassing highperformance gasoline vehicles.
While EVs are often praised for their safety features, the data suggests that their powerful acceleration may contribute to dangerous driving conditions, particularly for drivers unaccustomed to the vehicle’s rapid speed. Insurance data reveals that faster EV models are involved in more accidents than those with less aggressive performance.
This trend is not exclusive to electric vehicles, as highperformance gasoline-powered cars have also been linked to higher accident rates. However, the unique driving dynamics of EVs — particularly their instant torque — may exacerbate the issue. Experts are calling for increased driver education to better manage EV handling and to mitigate potential safety risks.
As EVs become more prevalent, insurance companies are collecting more data on their real-world performance, which could influence future insurance rates and policy adjustments.
HOW EVS ARE RESHAPING THE AFTERMARKET
THE RISE OF CONNECTIVITY and electric vehicles is reshaping the automotive aftermarket, but the transition is
happening more gradually than anticipated, according to Paul McCarthy, president of MEMA Aftermarket Suppliers.
While many expected EVs to revolutionize the industry overnight, McCarthy emphasized that the shift is more evolutionary than revolutionary. He pointed out that concerns about having fewer repairs to perform on EVs have proven to be unfounded. Issues like tire and control arm replacements, as well as the growing importance of EV cooling and HVAC systems, underscore that the need for repairs remains strong.
McCarthy also referenced data from Consumer Reports and J.D. Power’s Vehicle Dependability Study, both of which show that EVs and plug-in hybrids often experience more issues than traditional internal combustion engine vehicles. Despite this, McCarthy sees a strong future for both internal combustion and electrified vehicles in the aftermarket industry.
As vehicle technology becomes more complex, McCarthy believes this will create significant growth opportunities for aftermarket suppliers. The rise of connectivity, with features like remote diagnostics and mobile repair services, is also expected to enhance customer satisfaction and streamline supply chains in the coming years.
EV COLLISION TRENDS AND COST DISPARITIES CONTINUE TO RISE
A NEW REPORT FROM MITCHELL, a technology provider for the collision repair industry, reveals that battery electric vehicles (BEVs) sustain more rear-end damage, are more expensive to repair and take longer to return to the road compared to internal combustion engine (ICE) vehicles.
According to the Q3 2024 Plugged-In: EV Collision Insights report, while front-end damage is the most common type of collision, rearend impacts are more frequent for BEVs. The study found that BEVs are involved in 36 per cent of rear-end collisions, compared to 28 per cent for ICE vehicles. While front-end damage is typically more costly, BEVs overall incur higher repair costs due to the complexity of their parts and technologies.
The average repair cost for BEVs was $6,923 in Canada, higher than the $5,615 for ICE vehicles. In the U.S., the cost for BEVs was $5,560 compared to $4,741 for ICE vehicles. Additionally, BEVs take longer to repair, with claims frequency rising in both the U.S. (up 47 per cent) and Canada (up 26 per cent) in the last year.
As BEVs and ICE vehicles approach price parity, total loss outcomes are becoming comparable, with BEVs' average total loss market value at $41,380 in Canada, close to $42,498 for newer ICE vehicles. Mitchell’s report emphasizes the need for insurers to better assess these dynamics as EV adoption grows.
PHEVS SHINE BUT FOR HOW MUCH LONGER?
A NEW REPORT SUGGESTS plug-in hybrid electric vehicles (PHEVs) are seeing strong growth despite challenges in the electric vehicle market, but their long-term future remains uncertain.
According to IDTechEx’s Plug-in Hybrid and Battery Electric Cars 2025-2045 report, PHEV sales were projected to grow nearly 75 per cent in 2024 compared to the previous year, surpassing seven million units. The surge is driven largely by China’s new energy vehicle policies and lower costs compared to battery electric vehicles (BEVs).
Mika Takahashi, a technology analyst at IDTechEx, noted that while BEVs struggled in 2024 due to weaker demand, trade tariffs and political uncertainties, PHEVs gained traction as an alternative. PHEVs feature smaller batteries—typically between five and 25 kilowatt-hours—making them more affordable while easing range anxiety with a backup combustion engine.
Despite their popularity, PHEVs face scrutiny over real-world emissions. A European Commission report found they emit 267 per cent more CO2 than official test figures suggest, especially when not regularly charged. This has prompted policy changes that could impact their role in meeting automaker CO2 targets.
While PHEVs currently benefit from incentives in China, IDTechEx predicts their market share will peak by 2028 before declining. By 2045, BEVs are expected to dominate with 75 per cent of the market, while PHEVs will hold just over five per cent. Falling battery prices and stricter emissions policies will likely accelerate the shift toward fully electric vehicles.
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NAVIGATING THE NEW PATH FORWARD
As incentives tail off but growth remains, here’s how automakers plan to find success with consumers in the ZEV market and the role of PHEVs in the reconfigured environment // By Adam Malik
The zero emission vehicle market has cooled down but that doesn’t mean there won’t be growth in the market. It just may not be as rapid as what was seen in recent times, especially to close out 2024.
ZEV sales in Canada reached record highs in the last quarter of 2024. According to S&P Global Mobility’s end of year Canadian Automotive Insights, the country’s ZEV market continued its rapid growth in the fourth quarter, reaching a national penetration rate of 18.9 per cent of new vehicle registrations. That’s up from 16.5 per cent the previous quarter.
This marked the highest quarterly share on record, reflecting growing consumer interest and supportive government policies, the group reported. Battery electric vehicles specifically made up 17.8 per cent of new vehicle registrations in December alone.
For the entire year ZEV rate hit 15.4 per cent in 2024, up from 11.7 per cent for 2023. BEVs made up 11.4 per cent for 2024 and Plug-in hybrid electric vehicles ended the year with 3.9 per cent market share.
But things changed in January — drastically. As federal incentives were paused and Quebec reduced incentives from $7,000 to $4,000 for this year, which will eventually be eliminated in 2027, the ZEV rate in January was expected to be about 10 per cent.
While that’s a drop off from December, it still means there was growth in the market. Automakers are adding to the options available, especially in the light truck segment.
“I think one of the things that we’ve seen with EVs that is helping the EV marketplace — you’re seeing more of those trucks come into play now,” Todd Campau, associate director of the aftermarket at S&P Global Mobility, explained at last fall's AAPEX. “There’s more crossover utility vehicles and more pickup truck EVs that are available.”
And there’s a greater focus on PHEVs. At the 2025 Canadian International AutoShow in Toronto, more PHEV options were presented to customers as a best of both worlds. They see this as a growth opportunity, as they position themselves to meet the increasing demand.
At the show, industry leaders from Ford, Volvo, Stellantis and Kia spoke with EV World about their strategies and insights into the evolving landscape of automotive technology.
Ford´s flexible approach
Canadian car buyers are increasingly embracing electric vehicles, and Ford is positioning itself to meet that demand with a strategy of flexibility and choice, according to Said Deep, Ford's head of North American product communications.
In an interview with EV World, Deep provided insights into Ford's electrification strategy that goes beyond a one-size-fits-all approach to vehicle technology.
“We believe in this freedom of choice,” he emphasized, highlighting the company's comprehensive lineup that spans from fully electric vehicles to
traditional gas-powered models and hybrid options.
The company's electric vehicle strategy is rooted in providing consumers with multiple powertrain choices. Deep pointed to Ford's current lineup, which includes the Mach-E electric SUV and the F-150 Lightning electric truck, alongside traditional gaspowered Mustangs and a range of hybrid vehicles.
“We think customers come to us and have a range of electrified vehicles they can get, or they can get a traditional gas option,” he explained.
Government incentives are playing a critical role in driving electric vehicle adoption. Deep noted that tax credits are helping to change consumer behaviours, making potential buyers more likely to explore electric options.
“The tax credits are certainly helping people ask, 'Do I want an EV?’” he said. These incentives are particularly important as Ford looks to expand its electric vehicle market.
The company is particularly excited about introducing more affordable electric vehicles in the near future. Deep hinted at upcoming models that will be smaller and more accessible to a broader range of consumers.
“We have other EVs that are going to be coming in different price ranges,” he revealed, suggesting Ford is committed to making electric vehicles more attainable for average Canadian consumers.
Recognizing that infrastructure remains a significant barrier to electric vehicle adoption, Deep noted the launch of the “Ford Power Promise” initiative. The program offers a comprehensive approach to addressing consumer concerns and aims to remove one of the most significant obstacles potential EV buyers face – home charging infrastructure.
“We will give you a complimentary charger for your home, with standard installation,” Deep explained.
The Canadian electric vehicle market presents an interesting case study compared to the United States. Deep acknowledged the unique dynamics, noting that while the markets are similar, Canada has shown a more robust appetite for electric vehicles.
“We're seeing growth across all of these different powertrains,” he said, highlighting the nuanced approach to electrification, be it battery, plug-in or mild hybrid options.
And Ford is not a newcomer to this area of the market. Deep noted the company's long history with hybrid technology, pointing out that Ford introduced its first hybrid SUV, the Escape Hybrid, back in 2004 – more than 20 years ago.
“We've never left that segment,” he said. Noting the company's consistent approach to alternative fuel technologies.
Looking forward, Ford plans to expand its electrified lineup significantly. The company aims to have hybrid versions across its entire lineup by the end of the decade. Deep also hinted at exploring extended-range electric vehicles.
Volvo´s revised roadmap
The electric vehicle revolution is taking a detour, and Volvo Canada is charting a revised course through the changing automotive landscape.
Volvo had planned to offer a fully electrified lineup by 2030. They’ve revised that plan, now to include PHEVs as part of its goal. Volvo's new strategy demonstrates a nuanced approach to electrification — one that prioritizes consumer needs and technological flexibility.
Matt Girgis, Managing Director of Volvo Canada, offered a look into the company's new electrification strategy, revealing that the road to full electric vehicles is proving more complex than initially anticipated.
“The shift to full electric is slower than we anticipated,” Girgis explained, highlighting a critical pivot in the automotive industry's electrification journey.
The solution? Plug-in hybrid vehicles that bridge the gap between traditional combustion engines and fully electric vehicles. But PHEVs aren’t just a stopgap; it's a strategic bridge to a fully electric future.
Volvo's approach reflects how the industry is changing in response to consumer hesitation.
“We're seeing that the plug-in hybrids are resonating very well with Canadians,” Girgis noted, pointing to a 75 per cent sales increase from 2023 to 2024. This surge demonstrated to the company that there’s a growing consumer appetite for a more flexible approach to electrification.
The reasons behind this shift are multifaceted. Range anxiety, affordability and infrastructure challenges continue to pump the brakes on full electric vehicle adoption.
“We had kind of this ‘first movers’ wave of EV buyers that were really excited, and now the next wave of EV buyers needs to be a bit more convinced to try the technology,” Girgis explained.
The plug-in hybrid offers a compromise. For the average Canadian, a round trip commute to the office could entirely be done on the PHEV’s battery without the need for the gas option to kick in, a fact Girgis described as “pretty significant.”
The flexibility is key, Girgis said — drivers can rely on electric
˝We had kind of this `first movers´ wave of EV buyers that were really excited, and now the next wave of EV buyers needs to be a bit more convinced to try the technology. ˝
power for daily commutes while having a gas engine as a backup for longer trips.
Volvo is taking a comprehensive approach to building consumer confidence in electrification. Girgis noted. The company has implemented multiple strategies, including extensive training for retailers, multi-day test drives, and strategic partnerships, such as with Tesla to provide Volvo owners with access to those charging stations.
However, Girgis emphasized that no single solution will solve the electrification challenge.
“You're talking about multiple pressure points, and you have to respond to all of them,” he stressed.
This means addressing everything from government rebates to charging infrastructure, from vehicle affordability to technological training, he added.
The company is also working to make electric and hybrid vehicles more accessible through technological innovations. Overthe-air updates provide a promising solution, allowing consumers to upgrade their vehicles more easily and technicians to stay current with emerging technologies.
Despite the challenges, Girgis remains cautiously optimistic about the momentum automakers have in the in the industry.
“But with a lot of the clouds around you, kind of have to be on your toes and pay close attention to how all these macro things unfold,” he said.
Stellantis navigating the new landscape
The future of driving is electric, but not in the way many initially predicted. As the automotive industry continues its transformative
journey, Stellantis representatives explained how they are charting a course that embraces flexibility, innovation and consumer choice.
In Toronto, Stellantis executives Mike Szymkiewicz and Lou Ann Gosselin offered a look into how they see the evolving world of electric vehicles, painting a picture of an industry that's rapidly adapting to changing consumer needs and technological advancements.
As the automotive landscape continues to transform, they highlighted that Stellantis is positioning itself as a leader in providing versatile, innovative solutions. The company's approach goes beyond simply selling vehicles — it's about offering consumers choices that align with their lifestyle, budget, and environmental concerns.
The company's approach to electrification is anything but onedimensional, they highlighted
“For a long time, people felt EV was the only solution,” explained Lou Ann Gosselin, head of communications for Stellantis. “Now, everybody seems to be coming to the conclusion that it's not just an all-electric future we're going to satisfy.”
This philosophy is evident in Stellantis's recent product launches.
“We launched the all-new Dodge Charger, made in Canada, and the Jeep Wagoneer Air, which are our first fully electric vehicles,” said Mike Szymkiewicz, head of product planning for FCA.
The journey hasn't been without its challenges, he noted.
“Getting dealers engaged, educated, and invested in selling these vehicles has been an incredible challenge, but also incredibly rewarding,” Szymkiewicz observed.
The market is showing clear signs of maturation. Consumer hesitation is giving way to increased comfort and understanding of electric vehicle technology.
“Electric vehicles are everywhere now,” Szymkiewicz noted. “People are more comfortable with the technology and how they drive. There's no longer a penalty to pay for driving an electric car.”
Particularly exciting to them is the rise of plug-in hybrid vehicles, which Szymkiewicz described as “the perfect technology, the perfect package.”
These vehicles offer a compelling compromise, allowing drivers to navigate city streets on electric power while maintaining the range capabilities crucial for longer Canadian journeys.
Pricing is becoming increasingly attractive, making electric vehicles more accessible to a broader range of consumers. Szymkiewicz pointed to the Fiat, which starts at under $40,000. So their message is that while the future of driving is electric, it's also flexible and accessible.
This “is opening up the technology to a whole other group of customers,” Szymkiewicz said.
However, the path to widespread electric vehicle adoption is not without its obstacles. The automotive industry continues to grapple with uncertainty as government rebates evaporate but mandates stay in place.
“The rebates going away and potentially coming back, along with existing mandates, are introducing some clunkiness into people's buying decisions,” Szymkiewicz acknowledged.
The pair noted that their company is meeting these challenges head-on by offering a diverse range of powertrain options. The company continues to provide hybrid options across its product line, including minivans and Jeep products. This strategy reflects a nuanced understanding of consumer needs — recognizing that one size does not fit all when it comes to automotive technology.
The broader context is promising. The Canadian automotive market saw strong sales in 2024, with electric and hybrid vehicles playing an
increasingly significant role. Industry experts see this as more than just a passing trend, but a fundamental shift in how consumers think about transportation.
Kia plots out the road ahead
Canadian car buyers are navigating a complex landscape of automotive technology, and plug-in hybrid vehicles are emerging as the bridge between traditional gas-powered cars and fully electric vehicles.
Elias Al-Achhab, chief operating officer of Kia Canada, believes the path to widespread electric vehicle adoption isn't a straight highway, but a carefully navigated route with hybrid technologies serving as crucial waypoints.
“In the short term, we see more hybrids and plug-in hybrids growing at a faster pace,” Al-Achhab explained during an interview at the 2025 Canadian International AutoShow. “We see it shifting back towards bigger growth in EVs in the next three to five years.”
The key driver behind this gradual transition? Consumer anxiety about fully electric vehicles.
“Range anxiety is a big one,” Al-Achhab noted.
Most consumers worry about an electric vehicle's ability to last throughout their daily driving needs. Plug-in hybrids offer a psychological safety net, providing a gas engine backup that ultimately helps drivers become more comfortable with electrification, he added.
As also noted by Volvo’s Girgis, Al-Achhab highlighted that many plug-in hybrid owners discover they rarely use their gas engine.
“Most people will buy a plug-in hybrid because they're worried
˝What they will find is that on a plug¯in hybrid that only does 50 kilometres of range before the gas engine kicks in, they never end up using the gas engine.˝
about lasting on a full charge,” he said. “What they will find is that on a plug-in hybrid that only does 50 kilometres of range before the gas engine kicks in, they never end up using the gas engine.”
This discovery often leads consumers to realize that electric vehicles with longer ranges — like those offering 450 kilometres — are more than sufficient for their needs.
As the automotive landscape continues to evolve, plug-in hybrids represent a critical stepping stone, Al-Achhab noted. The option is helping Canadian drivers gradually embrace electrification while maintaining the comfort and flexibility they've come to expect from their vehicles.
And the transition to electric vehicles isn't just about technology, but education. Al-Achhab emphasized that misinformation and lack of understanding remain significant barriers.
“There's a job to be done between the OEMs, the dealers and the government to try to educate consumers on what their options are, so that they make the right decision for their lifestyle,” he said.
Concerns about vehicle maintenance, particularly battery repairs, are also being addressed. Kia's approach involves modular battery systems that allow for targeted repairs.
“Should anything arise where you have a module that has died or is not keeping charge to the right extent, we can just replace that part of the battery,” Al-Achhab explained.
The ultimate goal remains clear: Providing Canadians with a comprehensive range of vehicle options that meet diverse needs and comfort levels.
“We have a car for everybody,” Al-Achhab stated. “EVs are very much in and have given us a lot of good success, but they're not maybe for everybody at the moment.”
MARKET MOMENTUM
The effects of tariffs and incentive programs on the Canadian EV industry
// By David Mayers
The electric vehicle industry in Canada has been influenced by several factors, including government incentives and recent international trade policies. The suspension of federal EV rebates and the imposition of tariffs, have significant implications for both the purchase and maintenance of EVs in the country.
In January 2025, Transport Canada announced the pause of the Incentives for Zero-Emission Vehicles (iZEV) Program due to the exhaustion of available funds. Since its inception in 2019, the iZEV Program has been instrumental in promoting EV adoption by offering rebates of up to $5,000 for eligible vehicles. More than 546,000 vehicles benefited from this program, contributing to an
increase in the zero-emission vehicle market share from 3.1 per cent in 2019 to 11.7 per cent in 2023.
The sudden suspension of the rebate program has raised concerns among industry stakeholders. Joanna Kyriazis, director of public affairs at Clean Energy Canada, highlighted that the program's “termination represents a big oversight” for both the growing EV industry and Canadians aiming to save on transportation costs. She emphasized that EVs offer substantial savings over time, with charging costs significantly lower than fuel expenses for gasolinepowered vehicles.
Considering the investment the Ontario and federal governments have made towards battery production and infrastructure it’s
˝I do believe in the end that it will lead to more EV owners retaining their EVs longer, putting greater emphasis on maintenance and the need for technician training.˝
concerning that incentives would be eliminated completely. In my last article, I highlighted the need for a strong used market and as more factors push new prices up it could move the needle on used sales as well as retaining EVs already in the market for a longer period.
In early 2025, the U.S. administration imposed a 25 per cent tariff on imports from Mexico and Canada, affecting various industries, including automotive. This policy change has led to significant price adjustments by automakers operating in Canada. Tesla, for instance, increased the prices of its popular models in Canada, with the Model 3 seeing a rise of up to $9,000 (approximately 13 per cent) and the Model Y up by $4,000 (6 per cent), effective February 1, 2025.
These adjustments coincide with the implementation of the new tariffs, which are expected to impact car parts pricing and, consequently, vehicle costs.
Similarly, Ford CEO Jim Farley acknowledged that the new tariffs could increase vehicle prices by about $3,000 each, adding $60 billion in extra costs to the industry. However, he noted that Ford's extensive U.S. manufacturing operations, with 80 per cent of its vehicles sold in the U.S. produced domestically, provide a competitive edge over rivals more reliant on cross-border trade.
The combination of halted federal rebates and increased vehicle prices due to tariffs poses challenges for EV adoption in Canada. The absence of financial incentives and imposed tariffs may deter potential buyers, slowing the momentum gained in recent years. Additionally, higher upfront costs could disproportionately affect middle-income families in particular, making EVs less accessible to a broader population.
Tariffs can also influence the cost of EV parts, potentially
increasing maintenance and repair expenses. Even with these scenarios the financial model for many households still greatly support the benefits of EV ownership.
I do believe in the end that it will lead to more EV owners retaining their EVs longer, putting greater emphasis on maintenance and the need for technician training.
What is strongly needed is for provincial governments to reassess their incentive programs to sustain EV adoption rates. For example, British Columbia reduced its rebate from $7,000 to $4,000 and plans to suspend its provincial rebate program at the time of writing this article, due to unprecedented demand depleting the fund.
When a program is working it needs to be continued. Such measures underscore the need for coordinated efforts between federal and provincial authorities to ensure the continuity of support for EV buyers.
The current landscape presents both challenges and opportunities. While financial and trade policy shifts will impact the Canadian EV industry, it highlights the importance of developing robust domestic manufacturing capabilities and supply chains while we continue to build robust maintenance and other supportive infrastructure.
Investments in local production of EVs and components will mitigate the impact of international trade disputes and tariffs, ensuring stable pricing and supply for Canadian consumers.
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.
GREEN DREAMS, DIRTY TRUTHS
The hypocrisy of the electric vehicle market //
By Derek Suen
Electric vehicles have become the poster child of the climate crusade — wrapped in buzzwords, propped up by politicians and paraded by automakers as the cure-all for environmental sin.
But scratch the surface of the glossy marketing, and what you’ll find isn’t a clean revolution — it’s a messy patchwork of half-truths, political theatre and economic protectionism.
For the aftermarket, distributors and OEMs, the time for blind optimism is over. EVs aren’t the fix-all fantasy they’ve been sold as. They’re a tool — one being wielded with more agenda than evidence.
How green are EVs really?
The heart of every EV is its battery, and manufacturing these batteries is anything but clean. Mining for lithium, cobalt, and nickel leaves deep environmental scars.
Lithium extraction alone consumes 500,000 gallons of water per metric ton, with operations in Chile’s Atacama Desert depleting up to 65 per cent of the region’s water. Cobalt, sourced predominantly from the Democratic Republic of Congo, is linked not only to ecological damage but also to labour exploitation. Nickel mining in Southeast Asia contributes to acid runoff and deforestation.
According to Volvo’s life cycle analysis, producing an EV creates up to 70 per cent more emissions than an ICE vehicle, largely due to the battery. It takes up to 70,000 miles of driving for an EV to break even with a gas-powered vehicle in emissions terms.
Still, not all EVs are created equal. OEMs are making strides in battery tech. Lithium iron phosphate (LFP) batteries — used increasingly by BYD and Tesla — are more stable, longer lasting and avoid cobalt entirely. Sodium-ion batteries, now entering pilot production in China, offer even greater sustainability potential. These innovations deserve attention, but for now, they remain exceptions rather than the rule.
Tesla owns the hype. China owns the future Tesla dominates headlines but the real innovation in EVs isn’t coming from California — it’s coming from China. Brands like BYD,
Zeekr, NIO, Xpeng and Geely are setting new global benchmarks. While the Tesla Model 3 starts at US$40,000 and offers 272 miles of range, the Zeekr 001 delivers up to 462 miles with a more refined cabin — at a similar price.
So why aren’t these vehicles in North American driveways? Because they’re too competitive. The U.S. shields its market with 100 per cent tariffs and regulatory barriers — not to protect consumers, but to protect Tesla. Canada implanted similar action soon after the U.S.
And the gap isn’t just in range. According to J.D. Power and CarNewsChina, Chinese EVs now lead in interior finish, infotainment and ADAS. Many offers ultra-lux interiors with ambient lighting, Nappa leather and panoramic AI-powered dashboards. NIO’s NOMI assistant makes Tesla’s voice control feel dated. Xpeng’s City NGP system outperforms Tesla’s FSD beta in dense urban traffic.
In a fair fight, Tesla wouldn’t be the standard. It would be trying to catch up.
The infrastructure illusion
Tesla sold 1.8 million EVs globally in 2023. Sounds impressive — until you realize Toyota sold 3.5 million hybrids worldwide in the same year. Hybrids deliver high efficiency, low emissions and zero infrastructure headaches.
EV adoption in North America is fundamentally limited by geography and electrical standards. Europe’s dense cities and 220V grid make Level 2 charging accessible from any household outlet. North America? We’re stuck at 120V unless homeowners pay thousands to upgrade.
Public charging networks are growing, but not fast enough to support long-range travel across vast geographies.
Charging takes time — 30 to 40 minutes for fast charging (if you're lucky), hours at home. Compare that to the convenience of a hybrid or plug-in hybrid (PHEV), and the supposed “ease” of EVs starts to look less convincing.
Europe´s EV reality check
The EU, once a champion of EV mandates, is pulling back. The UK pushed its ICE ban from 2030 to 2035, citing infrastructure and affordability gaps. Germany eliminated EV subsidies in 2024, causing a 65 per cent drop in sales in January 2025. France is tightening foreign EV incentives. Even Norway and the Netherlands are slowing rollouts.
The message is clear: EV goals are outpacing practical realities.
The North American hypocrisy
Politicians say EVs are about saving the environment. But if that’s true, why block superior foreign EVs from entering the market? If affordability and emissions are priorities, then BYD’s seal should be lining Canadian and American roads.
But that’s not how the system works. Politics is driven by special interests. Votes come from jobs, and jobs are tied to union-backed OEMs. High tariffs on Chinese EVs protect incumbents — not consumers.
As someone who lobbied MPs on right-to-repair issues during my time on the AIA Canada board, I witnessed this disconnect firsthand. Many lawmakers didn’t understand the basics of our industry. A staffer for then-Minister Philippe Champagne even told us that unless our story was media-friendly, he wouldn’t allocate time.
This is a $44 billion Canadian industry supporting 500,000 jobs — and it barely registers in Ottawa.
The EV push isn’t being led by data. It’s driven by narrative — and that narrative is political, not environmental.
The real opportunity for the aftermarket
The aftermarket is scrambling to pivot. Everyone’s focused on HV battery replacements — US$15,000 to US$20,000 repair order. But beyond that, there’s a long list of high-margin components already starting to fail on aging EVs: Onboard chargers, large drive units (LDUs), AC compressors and power electronics.
Thankfully, pioneers are stepping up. SEG Automotive, a Bosch spin-off, is developing remanufacturing solutions for LDUs and electric motors. In Norway, EV Hub is offering diagnostic tools that estimate the remaining lifespan of HV components — bringing transparency to predictive maintenance. Dorman Products continues to expand its portfolio with EV-compatible actuators, window regulators and control modules.
This is where the real opportunity lies. The first wave of EVs is aging fast. The smart players will monetize the failure curve while the rest of the industry plays catch-up.
A rational consumer´s view
As a practical consumer, I’d take a plug-in hybrid over a full EV. You get the best of both worlds — electric efficiency without the wait time or infrastructure hassle.
Technically, PHEVs preserve battery health better than traditional hybrids. Larger battery packs mean less stress per cycle. Controlled overnight charging helps rebalance cells. Many PHEVs have better thermal management systems as well. Unlike traditional hybrids that charge through regenerative braking, PHEVs offer stable, predictable energy input. Just remember — if you don’t plug them in, you’re dragging around dead weight.
When used properly, PHEVs are the most balanced and cost-
effective choice on the road today.
Final take
EVs are not a silver bullet. They’re a political instrument wrapped in green marketing. Yes, innovation is happening — LFP batteries, sodium-ion chemistries, new reman pathways. But these advances are being drowned out by narratives crafted more for headlines than hardware.
The aftermarket must evolve — but not blindly. It needs to understand where the real failures will emerge, where the margins are and who the innovators are.
The system is broken, yes, but not beyond repair. For those bold enough to think critically, challenge assumptions, and build smarter solutions, there’s still time to lead.
The cracks are showing. The question is: who’s going to drive through them before everyone else wakes up?
Derek Suen, MBA, is an automotive aftermarket professional with 15 years of experience, specializing in product research for highdemand parts. With a background in both manufacturing and distribution, he brings deep insight into customer needs across North American and European markets.
What you should do now:
Technicians: Begin training on LDUs. Tesla’s Model 3 LDUs commonly fail due to a poor seal design that leads to fluid contamination and unit seizure. The repair requires no complex calibration—removing much of the anxiety around serviceability. This is a clear entry point into high-value EV repair.
Distributors: Audit product lines for EV/PHEV compatibility. Prioritize SKUs with multiple OEM coverage or broad fitment to optimize inventory space and ROI. Push vendors to consolidate SKUs to reduce low-turnover risks and improve your balance sheet resilience.
Manufacturers: Track predictive maintenance players like EV Hub. Smaller enterprises are already delivering what EV customers need—insights, diagnostics, and proactive care. Partner with these innovators to co-develop scalable solutions and capitalize on underserved market opportunities.
By The Numbers
Stats that put the North American automotive aftermarket into perspective
$4.7 billion
Ford’s losses in its EV division in 2023. It lost another $2.5 billion in the first half of 2024. It announced a scale back in EV production.
DBRS Morningstar
2.5 million
If as expected, 71% of new passenger cars and 72% of new light-duty trucks and commercial vans in the U.S. are by 2035, it would reduced fuel consumption by 2.5 million barrels per day.
International Energy Agency
31%
Electric vehicles would need to drop in price by almost a third to reach its sales target of 60 per cent EVs by 2030.
Parliamentary Budget Officer Yves Giroux
30%
How high the combined market share of BEVs and PHEVs could be in new vehicle registrations by 2027.
S&P Global Mobility
Nearly half of the surveyed fleet managers expect EVs to make up 50 per cent or more of their fleets by 2030.
Frost & Sullivan
$155 million
The investment in a new Harmon Systems facility in Ontario which will manufacture e-compressors, an essential component for electric vehicles.
Government of Ontario
80% 80%
The number of fuelling stations that could be unprofitable by 2035 if the industry doesn’t make plans to adjust for electric vehicles.
ON THE ROAD
Canadian International AutoShow
February 14-23, 2025
Toronto, Ontario
A slight departure from previous years, exhibitors of the 2025 Canadian International AutoShow turned its focus away from battery electric vehicles and instead shined the spotlight more on plug-in hybrid electric vehicles. With 50 vehicles representing 24 different brands, more than 15,000 test drives of electric vehicles were performed between the inside and outside tracks. The BMW i4 won the 2025 Canadian Electric Car of the Year. The 2025 Canadian Electric Utility Vehicle of the Year winner was the Hyundai Ioniq 5 N.
