“Zero-emission vehicles” | Quebecers will be spoiled for choice

New federal rules should indirectly favor dealers by

Consumers will be spoiled for choice when shopping for an electric or plug-in hybrid vehicle. With a more restrictive “zero-emission vehicle (ZEV)” standard already in force, the Quebec market should continue to be prioritized by automotive giants, despite the recent announcement of a federal plan which will come into force in two years.

“It’s not a revolution,” emphasizes Ian Sam Yue Chi, president and CEO of the Corporation des Concessionaires Automobiles du Québec (CCAQ). Manufacturers allocate their vehicles to markets where they are sold more quickly. There is a potential for Quebec dealerships to have more electric and plug-in hybrid vehicles in the coming years. »

On the eve of the holidays, the Trudeau government announced on December 19 that 20% of new vehicles sold in the country in 2026 must be considered ZEVs. This requirement will gradually increase to reach 100% of units in 2035. After the first nine months of 2023, these vehicle categories represented approximately 10% of new registrations in the country, according to Statistics Canada.

This regulation will work with a system of credits accumulated according to the type of model sold by manufacturers to ensure that they respect the annual quotas. This is not an extremely restrictive measure, since manufacturers who have not collected enough credits can purchase them from competitors who have accumulated surpluses.

All this is already part of the reality in Quebec and British Columbia, where provincial standards are already in force – and more severe – with the credit system. In the Quebec market, 32.5% of vehicles sold in 2026 will have to be powered by electricity. Automakers have every interest in prioritizing these two markets, believes Daniel Breton, President and CEO of Electric Mobility Canada.

“The same vehicle will count for a provincial credit and a federal credit,” said this former Minister of the Environment within the PQ government of Pauline Marois. Provinces that do not have their own framework will be at a disadvantage. It is certain that we will eventually have to deliver more ZEV vehicles to other provinces, but until then, there will be an advantage for Quebec and British Columbia. »

Already in mind

Quebec is in the lead, behind British Columbia, of the Canadian markets where the most ZEV vehicles are sold. According to Statistics Canada, these vehicles represented 17.5% of new registrations in the Quebec market after three quarters in 2023. This year, the provincial target is 19.5% of new vehicles sold.

One might think that a federal standard that imposes quotas could put pressure on the supply of electric and plug-in hybrid models. In the short and medium term, this scenario is unlikely, according to experts consulted by The Press, especially when it comes to electric cars. First, it will be two more years before the federal framework comes into force. The effect of a tightening takes time to materialize. A document from the Quebec Ministry of the Environment, the Fight against Climate Change, Wildlife and Parks released last July revealed that we would have to wait until 2027 before seeing the effects of tightening its standard. The Quebec scenario anticipates 75,000 additional electric vehicles on the roads thanks to its more severe framework.

In addition, the delays that often stretched beyond a year observed in recent years are becoming the exception rather than the rule, says Ian Sam Yue Chi, who represents more than 890 members in Quebec.

“ZEV standards put pressure on manufacturers to supply the market,” adds Simon-Pierre Riou, spokesperson for the Association of Electric Vehicles of Quebec. It’s restrictive for them. They must take steps to ensure that stocks increase. »

Added to this are the investments announced by automotive giants – such as General Motors, Ford, Hyundai, Toyota, Tesla and others – to assemble electric vehicles in North America, recalls Daniel Breton.

“The list of electric models will continue to grow,” he adds.

Luc Soucy, president and founder of the Terrebonne Ford and West Island Ford Lincoln dealerships, points out that there are around 150 electric models at his dealership located in the northern crown. The versions eligible for Quebec and Ottawa rebates are particularly popular with customers.

According to Environment and Climate Change Canada, there were “more than 50 ZEV models” in the country last year. More than 40 additional models are expected in 2024.

More than the rules

This entire shift, however, has some blind spots, according to the CCAQ. Governments must do more than just impose regulatory requirements. Ultimately, financial aid for the purchase of these vehicles must remain in place. We must also ensure that the network of charging stations continues to increase its geographic footprint, underlines the president and director of the Corporation.

We need to look into training the technical staff responsible for repairing and maintaining these increasingly complex vehicles, says Ian Sam Yue Chi.

“A growing number of dealers also need to update their installations,” he adds. There are requirements to meet. The costs are astronomical. The government will have to look into this in the near future. »

Mr. Soucy claims that the bill fluctuated around 1.5 million at his Terrebonne dealership to “come up to the manufacturer’s standards”.

“Ford requires three super terminals per dealer,” he says. There is what the manufacturer requires and what your market requires. We sold 300 electric vehicles last year in Terrebonne. It’s between 25% and 30% of our sales. It is also necessary to modernize the installations inside the building. It’s a major investment. »

Mr. Breton shares the concerns of the CCAQ on the aspect of training, particularly outside large urban centers. The head of Electric Mobility Canada, however, recalls that this issue goes beyond ZEV vehicles. There are also challenges to be met with gasoline vehicles, which are becoming more complex, since they are equipped with increasingly sophisticated on-board computers.