2022 is going to be a massive year for the electric vehicle industry. Global giants, Sony and Honda announced on March 4, 2022 that they will team up to develop and sell electric vehicles. They’ve also invited other automobile companies to join their project. With the aim of launching their first product in 2025, the two companies have divided responsibilities to streamline the process.
Joint venture of automobile innovation
Kenichiro Yoshida, Sony CEO, said that in this venture they would like to lead the mobility evolution by combining their technology and experience with Honda’s long experience in mobility development and vehicle body manufacturing technologies.
During the press conference, which was held in Tokyo, Japan, Toshihiro Mibe, Honda CEO, said that they don’t plan to take this venture public anytime soon but are open to that idea. This partnership comes at the exact time Honda has been under pressure for developing carbon-free automobiles. Sony, on the other hand, wants to transform into an important player in next generation vehicles. While they didn’t reveal any financial data, they promised that their product will be equipped with features beyond the traditional ones offered today.
This announcement comes weeks after Sony announced that they’re forming a new company, Sony Mobility, to enter the EV market. They also released the prototype for their very first SUV, VISION-S 02.
Other tech companies expanding into the EV industry
Baidu and Xiaomi, two major Chinese technology companies, announced recently that they’ve formed an electric vehicle brand as well. Xiaomi announced they’ll be investing $10 billion over the next 10 years in their company, Xiaomi EV, Inc. It is already 300 employees strong.
Baidu formed a joint venture with Chinese automobile maker Geely. It is called Jidu and Baidu just recently invested $400 million after they received $300 million in funding in initial capital last year. It will be used towards research, development, and mass manufacturing.
Competition on rise in the EV market
The main focus of this competition is going to be about making batteries cheaper, faster, and less vulnerable to raw material shortages. Today, batteries cost one-third of the total making costs. Automakers and tech companies understand that there’s a big demand for electric vehicles and are investing in EV startups, so they aren’t left behind.
Tesla, which has the biggest market share in the EV industry, still depends on Asian markets for their batteries. US President Biden has encouraged companies to move their battery supply chain to the country, so political and geographical factors don’t interrupt the production.
Canada aims to become zero-emission by 2050 and Federal Environment Minister, Steven Guilbeault, has started putting a plan in place. Currently, road transportation accounts for 20% of total greenhouse gases emitted in Canada. According to the plan, the federal government wants 50% of all new vehicles sold by 2030 to be zero-emission and 100% by 2035.
Only 3% of cars registered in Canada are EV or zero-emission. The Canada-wide EV sales quote mandate will come into effect by late 2022 or early 2023. Guilbeault has already held several consultation sessions for expert advice on the mandate, how it will affect the Canadian auto industry, and whether there should be an interim goal before 2030.
Provincial sales quota mandate is working wonders
Quebec implemented the EV sales quota mandate in 2018 and British Columbia introduced it in 2020. Both provinces have seen a drastic increase of electric cars sold compared to the rest of the nation. Three out of four new EVs purchased in Canada were in Quebec and British Columbia in 2020. They also offer rebates to incentivise EV sales. According to the mandate, carmakers have to pay $5,000 for every car they aren’t able to sell from their quota.
Seeing the success, Yukon, Northwest Territories, and all four Atlantic provinces have introduced EV rebates in the last 18 months. Sales in Ontario went considerably down after the provincial government stopped the EV rebate. Before 2018, 19% of national sales came from Ontario. Waiting for auto deliveries has been the worst amidst the global supply chain crisis.
Becoming a leader in EV sales
Whether Canada implements the mandate or not, EV sales will continue to rise but won’t benefit the federal government. Norway’s EV rebates have made the country a leader in global sales. In 2020, 75% of cars sold in Norway were electric vehicles. Many European Union countries are increasing their rebates to make EVs more affordable. Germany recently passed a law that requires every gas station to have an EV charging station.
Omar Alghabra, Canada’s transportation minister, said that introducing the mandate will not only change consumer behaviour but also the supply chain system and rules and regulations in the auto industry.
Another critical aspect is preparing car dealerships. They will need EV charging stations and train staff on sales and maintenance. While introducing a mandate will help Canada lower greenhouse gases emission, dealerships should be given enough time to make changes and also switch their pricing model to continue profiting from the sales.
Thinking of buying an electric vehicle? Installing a wall charger at home takes away the pressure of driving up to a public EV charging station. Plug in at night and wake up to a fully-charged car in the morning.
Wieser Electric is your local licensed electric car charger installer in Kingston, Belleville, Trenton, Quinte West, Cobourg, Napanee, Gananoque, Lansdowne, Brockville, Smith Falls, Perth, Kemptville, and Tweed, Ontario. Contact us today for a free consultation.
Ford has got us excited about their all electric F-150 Lightning. Here’s some good news for all Ford truck fans out there : The F-150 Lighting will be able to charge other F-150 Lightnings.
Linda Zhang, Chief Engineer, the brains behind the F-150 Lightning, mentioned during the 2021 Los Angeles Auto Show that Ford went through multiple challenges to ensure the new EV truck ranks high on performance and practicality.
According to Zhang, Ford is experimenting with charging other EVs with the Lightning however other EV models don’t currently have the Mach-E system, which is needed to transmit and accept electricity. Zhang had this idea after the launch of the 2021 Ford F-150 PowerBoost.
In other news
There’s been an interesting turn of events regarding the collaboration between Ford and Rivian to make a new Ford electric vehicle. A Ford spokesperson mentioned that after extensive discussions with Rivian, both have jointly decided to not pursue any EV development.
Ford owns 12% of the company, which became public in November 2021. Rivian is currently worth one and a half times more than the Michigan automaker.
Other than that, Ford’s continuing with their plan of increasing EV production. Recently, the company’s CEO, Jim Farley tweeted that they will produce 600,000 electric vehicles every year until 2023. They took this decision to meet the rise in demand across America.
With many people starting to make the switch already, the future is bright for EVs across North America. Apart from being eco-friendly alternative to gasoline-powered vehicles, the ability to charge EVs at home is a major selling point.
In 2020, Canada only sold 54,353 new electric vehicles, just 3.5% of the total number of new cars sold. While the pandemic is one strong reason for the low numbers, there are many more reasons people stray away from an electric vehicle.
Electric cars have a shorter range than gas-powered cars, so going on long trips can be inconvenient, especially when there’s a lack of charging stations. Other than that, these cars take almost an hour to charge. Electric vehicle sales are expected to boost in comping years, despite these advantages. Canada faces a huge deficit in public charging stations, which most people rely on for a quick charge.
Canadian government’s huge investment in electric vehicle infrastructure
Canada has around 6,000 charging stations spread across the country that supports the 3 percent EVs currently on the road. The government has also invested over $1 billion since 2015 to build the infrastructure. They have also been offering multiple incentives and tax rebates.
They plan to ensure all vehicles on the road will be zero emission by 2035 (it was set for 2040 earlier). This only means that there’ll be over 35 million zero emission electric cars that’ll require charging stations.
Currently, the Canadian government is offering a generous subsidy to build electric vehicle charging stations. Chevrolet announced in June 2021 that they’re offering a $750 credit to EV owners. FLO, a Quebec City-based startup, owns these charging stations. They own the most number of charging stations in Canada.
Removing another roadblock
To make the electric vehicle industry in Canada a success, EV automakers should allow car owners to charge at privately owned charging stations. It would also be the first step towards allowing EV car owners to charge at a public station without needing any apps. Wieser Electric specialises in charging station and residential wall connector installations in Kingston and surrounding areas. Contact us today for a free consultation with our licensed and experienced electrician.