Market Trends of Canada Electric Motor for Electric Vehicle Industry
This section covers the major market trends shaping the Canada Electric Motor for Electric Vehicle Market according to our research experts:
Rising Demand for Electric Vehicles to Propel the Market Growth
Factors such as rising demand for low-emission commuting, government subsidies, and tax breaks for long-range, zero-emission vehicles have driven manufacturers to produce electric cars globally. As a result, there is an increasing market demand for electric automobiles.
In 2021, a total of 1.7 million gasoline and diesel vehicles were sold in Canada, with just 37,000 electric or hybrid-electric. Electric cars, including battery electric vehicles (BEVs), plug-in hybrid electric vehicles, hybrid electric vehicles, and fuel cell electric vehicles, accounted for 11.8% of all vehicle registrations in 2021, up from 7.6% in 2020. The trend remains positive over the forecast period.
Major manufacturers have begun expanding their production capacity to fulfill the increased demand for electric motors for electric vehicles in the future. For instance, in April 2022, General Motors and Honda want to collaborate on developing low-cost electric cars that will employ GM's next-generation Ultiumbattery technology. The vehicles, which will feature a compact crossover, will be on sale in North America in 2027.
Moreover, Canada is experiencing several launches of electric vehicles, increasing the electric motors demand on the positive side. For instance:
- In November 2022, Subaru Canada Inc. announced the upcoming launch of its 2023 Solterra SUV, the company's first battery-electric vehicle. The vehicle is powered by a 72.8 KW battery and dual 80 KW electric motor pushing its range to 360 km.
- In June 2022, the Pacific Economic Development Agency of Canada, with British Columbia's Minister of Transportation and Infrastructure, announced a plan of investment worth USD 31,2 million under their joint federal funding for improving the public transport services in British Colombia. The upgradation includes the reconstruction of new transit exchanges and the modernization of the bus fleet towards electrification.
After considering these factors and development, demand for electric motors for electric vehicles is anticipated to register a high growth rate during the forecast period.
Rising Investment in Electric Motor
Major automakers, including Toyota, Honda, Tesla, General Motors, and Ford, have invested significantly in electric vehicles. It is anticipated that these expenditures will propel the demand for electric motors shortly. Additionally, it is expected that the global market for electric motors for electric vehicles will grow as a result of the developing partnerships between motor manufacturers and automotive businesses.
The segment is witnessing fresh investments in Canada, anticipated to take the demand over the positive side. For instance:
- In October 2022, Honda announced the mass production of the 2023 all-new Honda CR-V, anticipated to start at the Honda of Canada Mfg. plant. The company will also feature the production line for the two-motor hybrid system at Honda's Ohio Transmission plant for the upcoming Honda models.
The rising sales of hybrid vehicles and plug-in hybrids have increased electric motor demand. This system requires an advanced hybrid motor system. Thus the launches have elevated the need for these motors. For instance:
- In November 2022, Toyota unveiled its 2023 Prius Hybrid for the Canadian market. The car includes a small energy-efficient engine and a smart electric motor.
After considering these developments and factors, demand for electric motors is anticipated to witness a high growth rate with rising hybrid vehicle sales and expanding investment in the production landscape.
