Electrics make a market statement

Mikes-Photography from Pixabay

Hybrid electric and pure electric vehicles have gradually developed market share in North America. Now U.S. data suggests that 2020 was a pivotal year in electric vehicle (EV) growth. All indications are that the trend will only continue.

At the Fabricators & Manufacturers Association’s recent virtual Annual Meeting, Bernard Swiecki, senior automotive analyst in the Center for Automotive Research’s (CAR) industry labour and economics group, gave attendees a snapshot of the automotive industry. On the whole, his presentation was a positive one. It outlined how, from a trough in April and May 2020, the automotive market had bounced back to pre-pandemic monthly sales figures by December. And indications are that the sector will continue to improve greatlythrough this year, and further growth is expected in 2022.

But the really interesting data for me was the growth in EV sales. According to Swiecki’s data, EVs made up 5.2 per cent of U.S. vehicle sales in 2020, and it was the only segment to grow in both unit sales and market share. In January 2021, meanwhile, EVs accounted for 7 per cent of U.S. sales, which is a rise of about 33 per cent over January 2020.

The commitment is there in the automotive industry now to move rapidly to EV production. GM recently announced that it was transitioning all of its light vehicles to electric by 2035. Ford Motor Co. announced that by mid-2026, 100 per cent of its passenger vehicle range in Europe will be zero-emissions-capable, all-electric, or plug-in hybrid and will be completely all-electric by 2030. The company is planning to retool its Oakville, Ont., facility to build EVs. According to Swiecki, from 2017 to 2020 about 80 per cent of investments by U.S. automakers were in EV-related manufacturing or R&D.

Ultimately, the EV move should help the Canadian automotive industry. We’ve already seen some of that investment in R&D made here, and hopefully that research know-how trickles down to more related manufacturing jobs. The recent announcement by Saint-Jerome, Que.-based Lion Electric that it will create an electric vehicle battery plant is another example of a positive investment here in Canada.

Meantime, the U.S. and Canadian enthusiasm for large pickups and SUVs has also served Canada well, pushing GM to reopen its Oshawa facility to meet demand in that important market segment.

Focused growth in the EV and pickup/SUV segments should help to create sustainable employment for the Canadian automotive sector and its suppliers. As the automotive market shifts, hopefully Canadian strength in these two key areas will continue to be appreciated and built upon.