Summary:
In the latest “Driving into the Future” panel, experts Tim Cain, Joe McCabe, and Scott MacKenzie discussed the state of Canada’s auto industry in 2025, analyzing key numbers that impact car purchases and the broader market.
EVs and Market Incentives
The panelists highlighted Volkswagen’s $10,000 rebate on 2024 ID.4 EVs as a reaction to federal government cuts in EV incentives. While rebates help, EVs still struggle to match sales expectations. Notably, Canadian EV market share outside Quebec and British Columbia is only 4.4%, a stark contrast to the 13.5% nationwide figure which includes hybrids.
Impact of Trump’s Tariffs
The discussion also touched on U.S. President Trump’s tariff threats. His policies could lead to increased production costs in Canada, with a potential fallout for the auto industry. While tariffs might lower the Canadian dollar, they may also reduce the competitiveness of Canadian-made cars in the U.S., particularly for major manufacturers like Toyota, who exports up to 85% of its Canadian production.
Regulatory Credits and Tesla’s Profit
Regulatory credits, which Tesla sells to other automakers who don’t meet EV quotas, make up 43% of Tesla’s profits. The future of these credits is uncertain, especially if Trump’s policies roll back emissions mandates, which could have a severe impact on Tesla’s revenue.
These numbers indicate a volatile period ahead for the Canadian automotive industry, with major changes and challenges on the horizon.
Driving
Read the Full Article
