Success of Zero-Emission Vehicle Sales Regulation Depends on Enhanced Efforts to Address Consumer Affordability and Charging Concerns

View in Browser

CADA, CVMA, GLOBAL AUTOMAKERS - Automakers are committed to electrification, investing over USD $1.2 trillion globally into the transformation. However, the regulated sales targets for zero-emissions vehicles (ZEVs) soon to be released by Environment and Climate Change Canada Minister, Steven Guilbeault, will not be achievable without more ambitious government efforts to address Canadians’ concerns with vehicle affordability and charging infrastructure.

“Canadians expect certainty that they can afford, use, and charge their EVs in a manner that suits their different lifestyles and geographical requirements before making one of the most important purchasing decisions in their lives. Further, with the current high interest rates and high inflation severely impacting consumer affordability, many consumers lack the means to purchase EVs, as evidenced by the rising inventory levels on our members’ lots. Instead of attempting to dictate what individuals have to purchase, we suggest government focus on creating the right set of circumstances to stimulate demand,” said Tim Reuss, President and CEO, Canadian Automobile Dealers Association.

“Regulating vehicle sales will make life even more unaffordable for Canadians,” said Brian Kingston, President & CEO, Canadian Vehicle Manufacturers’ Association. “Achieving 100% ZEV sales requires a comprehensive, long-term plan to support ZEV adoption that includes stronger consumer purchase incentives, a widespread public charging network, and enhancements to the electricity grid to prepare Canada for more ZEVs on the road.”

“The automotive industry is fully committed to decarbonizing its products - there is no turning back,” said David Adams, President & CEO, Global Automakers of Canada. “With the ambitious ZEV targets we are anticipating in the final regulation, we will need a comprehensive and meaningful dialogue between government, the automakers, and utilities to ensure that we have the necessary ecosystem to support mass consumer adoption of ZEVs across all segments over short time horizons, along with data-driven progress monitoring on these necessary conditions.”

For more information on what is needed to achieve 100% ZEV sales by 2035 see the ZEV Timeline.  

New Economic Report Underlines New Car Dealers' Vital Role in Canada's Economy

CADA - The Canadian Auto Dealers Association (CADA) published its highly anticipated 2023 Economic Impact Report. This groundbreaking study, developed in collaboration with MNP, offers a comprehensive portrait of the substantial economic contributions made by auto retailers across the country.

This new data will allow decision makers to have a better understanding of how integral auto dealers are to local communities and regional economies. As the automotive industry is going through major structural changes, better information sharing is key in ensuring that policy objectives are well aligned with what is being observed, on the field, by auto retailers.

From job creation to economic growth and tax revenue generation, this report showcases the vital role played by new car dealers in shaping Canada's current and future economic landscape.

Key Findings from the National Report Include:

• Canadian automobile dealers sold 1,488,645 new vehicles.
• Generated over $28 billion of Canada's GDP.
• Contributed $6.3 billion in tax revenue.
• Recorded total revenues of $151.5 billion of which 54 percent was attributable to the sale of new vehicles and the remainder were attributable to the sale of parts, accessories, used vehicles and maintenance services.
• Directly employed 167,790 people, 56 percent of whom were in jobs requiring a post-secondary credential, professional certification or significant experience.

In addition to the national release, CADA strongly encourages individuals to explore the Economic Impact Reports simultaneously published by the provincial auto dealer associations. These provincially focused reports offer a nuanced perspective on the regional contributions of auto retailers, highlighting the diverse and substantial economic benefits they bring to communities across the nation. Commenting on the importance of the provincial reports, Tim Reuss, President and CEO for the CADA, emphasized:

"The data specific to each province is invaluable, especially when auto dealers engage with their regional and provincial politicians. These reports will serve as crucial tools for effective advocacy, enabling the industry to communicate its significance to local economies."

By delving into both the national and provincial reports, stakeholders, policymakers, and the public can gain a comprehensive understanding of the vital role played by the auto retail industry in Canada's economic prosperity.

CADA and MNP remain committed to fostering transparency and understanding of the economic impact of new car dealers. The reports, accessible through this website, aim to serve as valuable resources for informed decision-making and policy development.