A GREENER FUTURE HAS HIT A RED LIGHT
The COVID crisis has strengthened people’s attraction to owning their own vehicle. Whether out of the desire to avoid public transportation or to get out of the city, both rationales are driving Quebecers to invest in a car. What’s more, given the pandemic, most households have set aside enough money to get the car of their dreams.
Popularity of electric vehicles (EV) is increasing
79% of future buyers 18–44 would like to buy an EV within the next 5 years!
Sources: KPMG Survey, Canada, February 2021 / AVEQ / Radio Canada, Véhicules électriques : une industrie en pleine effervescence, October 2021 / companiesmarketcap.com, 2022/01/17
Production hits a road block
There’s certainly no lack of consumer demand. But manufacturers are finding it hard to keep up. Since 2020, the pandemic has hobbled production: plant closures, weakened supply chains, climate catastrophes, and especially the shortage of semiconductors have all been issues.
No chips? No cars!
The numbers are frightening: internationally, in 2021, it is estimated that between 9.5 and 11 million units were unable to be manufactured. Canada was not spared either, seeing a 22% reduction in light vehicle production from January to November 2021 when compared to the previous year, according to Desrosiers. This situation weighs heavily on Quebec dealerships’ ability to fulfill sales contracts, which have been accumulating for close to two years.
Dealers and consumers will just have to grin and bear it
The used market is on the rise
Given their inability to buy new, Quebecers have turned to the used car market. This ricochet effect has caused used car prices to climb exorbitantly, to the point where used Ford F-150 pick-ups are now close to costing the same as new models!
Source: Autohebdo, Rapport indice des prix, September 2021 compared to September 2020
To end on a positive note, although the recovery is late arriving, it will happen. At any rate, consumers are resolutely optimistic and oriented towards the future: 45% of Canadians even believe that flying cars will be in existence by 2041!
