Electric Avenue Winter 2025

Sustainable changes in the automotive industry in Canada in 2025

by Sebastien Dorelas

Over the past decades, the automotive industry has experienced several changes. These transformations are closely linked to the evolution of modern technologies. Drivers noticed the increasing automation, the emergence of intelligent vehicles and the electrification of cars. These modifications brought the industry forward as a whole. One of the most important factors behind this broader shift is sustainability. This approach aims at planning and developing a balance between our environmental, social and economic needs and impacts for the betterment of future generations. In Canada, the interests for sustainability have grown over the last few years. Consumers are paying more attention to organizations and their sustainable approach.  A study from Agriculture Canada indicates that 70% of Canadians seek food with environmentally sustainable production.

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If Canadians are  concerned about sustainability when it comes to food, does it mean they have the same interest when it comes to their vehicles?

Canadians and their appetite for sustainable driving   

There is an interest from Canadians regarding sustainable vehicles. In fact, the sales are still going strong. According to Volvo Car Canada’s 2024 Mobility Report, six out of 10 Canadians will consider an electric vehicle for their next car purchase.  This year, 418,800 new battery-powered electric passenger vehicles have been registered across this country. This cultural shift toward sustainability is also driven by government policies.  The federal government offers rebates of up to $5,000 for any Canadian who buys or leases a zero-emission vehicle (ZEV). This program is available until March 31, 2025.  With stricter emission regulations, the major automotive manufacturers are putting their best foot forward to comply with bringing more sustainable technologies to drivers.

Are Canadians ready for fully sustainable vehicles?

It is clear that Canadian consumers are witnessing a shift towards sustainable vehicles. While this transition is taking place, several challenges remain. These are part of the growing pains in establishing a sustainable automotive culture and industry from coast-to-coast.

Switching to EV comes with a cost beyond sustainability

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One of the biggest challenges to establish this sustainable automotive culture is the cost. It is true that electric vehicles are getting more affordable as the technology becomes more mature, but even with the federal rebates, a brand-new EV can still cost up to $45,000. Additionally, you need to have a home charging station. This adds an amount between $1,000 and $3,000.  In this economy where the average Canadian is pinching their pennies to make ends meet, the idea of opting for a sustainable vehicle looks great ideally, but not very practical in the day- to- day. Many Canadians have pushed back on the idea of buying a new vehicle already. They are also looking at other cost-saving options like mobility services including ride-hailing and car-sharing.  These new services are drastically changing the once established unique relationship between Canadian drivers and the automotive industry as ownership is no longer the only possible way and transportation gradually becomes more diversified.

Are sodium-ion batteries the new black? 

With advancing technologies such as lithium-ion and sodium batteries, the industry is heading in the right direction when it comes to sustainability. The EV industry is constantly seeking ways to improve sustainability while reducing its footprint.  There is a strong position from experts advocating for a change  from Lithium-ion batteries to sodium ones. In fact, researchers estimate that the sodium batteries should be affordable soon, as they predict a cost of $10/kWh by 2028.  However, there are still a few challenges left to solve. For instance, sodium batteries tend to decline rapidly after being charged and discharged repeatedly. 

Sustainable driving are social habits 

While technology keeps progressing, social norms are also going towards a more sustainable way of life. Humans are more connected to technology than they have ever been, from smartphones to smartwatches to smart homes with state of the art appliances. Cars have also become a product and by default, an extension of this socially connected environment. It’s no longer about the vehicle you drive, but how and why you drive it. The experiential factor weighs a lot more than it ever did for drivers.  Tesla cars offer innovation and technology, while being amongst the most sustainable cars on the market right now when compared with other internal combustion engine vehicles. Tesla drivers are often in a league of their own because they love cutting-edge technology while aiming to reduce gas emissions.

Eco-responsible driving social habits applicable daily  Social norms encouraged us to drive a few decades ago, now they push us to be eco-responsible drivers. They appeal to our intelligence and reason for making smarter choices and using alternative means of transportation. Carpooling and ridesharing have become very popular in major cities across the country. Biking has become a wallet-friendly way to commute while helping people burn calories.  Public transportation–including electric buses– systems manage to move thousands of people quickly and efficiently while offsetting the carbon footprint of individuals driving their cars.

As the new year begins, the automotive industry will continue its journey towards sustainability. There are many challenges ahead when it comes to making EV vehicles affordable, commercializing sodium batteries or simply encouraging better use of alternative means of transportation. Our society can overcome these hurdles by making some changes. After all, sustainability is also thinking about and anticipating tomorrow’s needs.

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