The electric vehicle (EV) industry has been on an upward trajectory, and as Canada embraces EVs in its battle against climate change, all eyes are on 2024 as a potential turning point. Government data from the first nine months of 2023 reveals that out of 1,286,951 newly registered vehicles in Canada, an impressive 132,783 were either battery electric or plug-in hybrids. This surge in EV adoption is indicative of a larger trend – the Canadian government has set ambitious targets, aiming to phase out gas vehicle sales by 2035 and require EVs to constitute 20% of all auto sales by 2026.

In a recent interview with BNN Bloomberg, Environment Minister Steven Guilbeault emphasized the importance of making EVs more accessible to Canadians. He noted the growing demand and expressed the need for regulatory support to drive the transition to EVs. Neil Cawse, CEO and founder of Geotab, a telematics and connected vehicle solutions company, echoed this sentiment. He stressed the significance of investment in EV supply chains and infrastructure to achieve economies of scale and reduce emissions, asserting that EVs offer a more cost-effective and eco-friendly option.

As 2024 approaches, there are several key trends and developments on the horizon for the EV industry, according to industry experts.

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Breaking Misconceptions

One of the major shifts anticipated in 2024 is the dispelling of misconceptions surrounding EVs. Neil Cawse believes that people are gradually becoming more comfortable with the idea of electric cars, and this trend is expected to continue. As these misconceptions dissipate, 2024 could be a pivotal year for the EV sector, with even more significant growth forecasted for 2025.

Common concerns such as the availability of charging infrastructure and the initial high purchase cost of EVs have largely been addressed. However, the challenge now lies in effectively communicating these improvements to the public. While many perceive EVs as expensive compared to gasoline vehicles, they often overlook the total cost of ownership. With significantly lower fuel and maintenance expenses, EVs are proving to be more economical in the long run.

Garrett Nelson, VP and senior equity analyst at CFRA Research, notes that the price premium of EVs has decreased substantially in recent times, narrowing the gap with traditional vehicles. As this trend continues, price parity between EVs and gas-powered cars may be achieved as early as 2024.

Charging Infrastructure Expansion

Another obstacle for potential EV buyers has been the perceived scarcity of charging infrastructure. However, this issue is rapidly being resolved. According to Neil Cawse, there is now sufficient charging infrastructure across Canada, ensuring that EV owners can access charging stations conveniently. A March 2023 report from Electric Autonomy Canada revealed that Canadian EV drivers have access to 20,478 public charging ports, representing a 30% increase from the start of 2022. Moreover, the federal government has committed to investing $1.2 billion to establish an additional 84,500 charging stations nationwide by 2029.

New Tesla Models?

Tesla, a leading player in the EV industry, has some significant developments in store. While the first deliveries of the highly anticipated Cybertruck began in late 2023, many on the waitlist may have to wait until 2024 to receive their vehicles. However, this isn’t the only exciting news from Tesla. Analysts like Garrett Nelson anticipate that Tesla will unveil a more affordable model in 2024, designed to attract a broader range of buyers.

This next-generation electric vehicle model is expected to be smaller in size, similar to the Chevy Bolt, and could be manufactured in Tesla’s Berlin facility. While initial estimates suggested a $25,000 price tag, experts believe it’s more likely to fall within the range of $30,000 to $35,000.

Commercial Industry Expansion

2024 could also see further expansion of electric vehicles in the commercial sector. Several Canadian companies started electrifying their commercial vehicle fleets in 2023, and this trend is expected to gain momentum. Tim Hortons, a popular Canadian fast-food chain, introduced its first two commercial EVs in 2023 – Volvo VNR Electric Class 8 trucks. These vehicles are already in operation and are set to reduce the company’s diesel fuel consumption significantly.

Similarly, Walmart Canada unveiled its first three electric semi-trucks – Freightliner eCascadias – at a distribution facility in Surrey, B.C. This move aligns with Walmart Canada’s commitment to a more sustainable and environmentally friendly fleet.

Neil Cawse believes that more companies will follow suit, expanding their EV fleets in the coming year. The growth of commercial EVs not only contributes to reducing emissions but also signals a broader shift toward sustainable transportation options.

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AI Integration

Artificial intelligence (AI) is poised to play a more prominent role in the EV industry. Improved data collection and analysis will enhance the performance and AI capabilities of electric vehicles. With the continued adoption of EVs, data related to factors like range in varying weather conditions, battery maintenance, and depreciation will become more refined.

The integration of AI is already evident in EV production, with reports suggesting that EV workers will need to acquire new skills to keep pace with technological advancements. While these changes may alter the nature of jobs in the industry, they are not expected to lead to significant job losses due to automation.

In conclusion, 2024 holds considerable promise for the electric vehicle industry, with potential breakthroughs in dispelling misconceptions, expanding charging infrastructure, introducing new EV models, and furthering the adoption of EVs in the commercial sector. As artificial intelligence continues to evolve, it will play a vital role in enhancing the performance and capabilities of electric vehicles, setting the stage for a sustainable and electrified future.

FAQs

1. What is the current adoption rate of electric vehicles in Canada?

• As of the first nine months of 2023, approximately 132,783 out of 1,286,951 newly registered vehicles in Canada were either battery electric or plug-in hybrids, indicating a growing adoption rate.

2. When does the Canadian government plan to phase out sales of gas vehicles?

• The Canadian government has set a target to phase out sales of gas vehicles by 2035 as part of its efforts to combat climate change.

3. What challenges are still faced by potential EV buyers in Canada?

• While many challenges have been addressed, some potential obstacles include misconceptions about EVs, the need for effective communication regarding cost savings, and concerns about charging infrastructure availability.

4. What are the key trends anticipated in the EV industry for 2024?

• The key trends expected in 2024 include the dispelling of misconceptions, expansion of charging infrastructure, potential new EV models, growth in the commercial EV sector, and increased integration of artificial intelligence.

5. How is artificial intelligence being integrated into the electric vehicle industry?

• Artificial intelligence is expected to enhance data collection and analysis, improving EV performance and capabilities. It will contribute to better understanding factors such as range in varying conditions, battery maintenance, and depreciation.