Canada’s automotive industry generates about $20 billion, which is an equivalent of a fifth of the country’s Gross Domestic Product (GDP). This sum is usually recorded under the normal situation, which is in the coronavirus pandemic’s absence. The lapse of the country’s auto industry due to the pandemic also plummeted the industry’s sales. According to the statistics by Scotiabank Global Economics, the revamp of production immediately after the new normal witnessed a rise in sales. The monthly turnover rose by 46% even though the sales value is below the average high.
Canada’s DesRosiers Automotive Consultants Inc. Revealed its 165000 electric vehicle sales mid this year, which is approximately 7% more than the previous month but still operating below last year’s sales at the same time. Industry experts have forecasted the sale of 1.5 million units this year, although this value may change since the US influences the Canadian economy.
Nevertheless, overlooking the coronavirus impact and glimpsing in the past more is expected in the future, if not less. Studies by KPMG reveal that electric vehicles’ manufacturing will increase continuously over the coming years with more discoveries and brands, especially now that the economy is transitioning to clean energy.
Experts anticipate the production of 13 million electric vehicles and hybrids every year in the next five years. The International Council on Clean Transportation (ICCT) states that Ontario manufactures about 0.4% of the total global electric vehicles, with the value being 2 million vehicles three years ago. Nevertheless, the number is going to rise once the uptake of renewable energy takes shape.
Canada ranks 12th in the production of electric vehicles, which accounts for $3 billion in the production of heavy electric vehicles. ICCT explained that Canada would expand evenly once the switch to electric vehicles takes form.
Various companies are battling it out in absorbing the market share of electric vehicles with the likes of General Motors, Ford, Tesla, and Toyota Motors. These companies are evolving mechanisms to support their competitive advantage over each other. Canada has over 200 companies in Ontario, which are expanding the automotive technologies they have for competition. Canada is cashing into the electric vehicle infrastructure to accelerate the uptake of these vehicles in the country.
Additionally, the country’s manufacturers are developing battery technology like hydrogen technology and lithium, whose raw materials and components can be created within the state. Finally, Canada is investing in artificial intelligence to ensure the technology supports infrastructure development and generates revenue to sustain the country’s economy. Nevertheless, ICE cars’ usage will continue to grace the country until a time they have proved they can support the use of electric vehicles.https://themarketeagle.com/