CEO Bruce Wu
Toronto, June 09, 2022 (GLOBE NEWSWIRE) — As many as 20% of new personal vehicles and transport vehicles will be zero emissions by 2026. Rising fuel prices have given Canadians another reason to buy electric vehicles. According to a study by AutoTraders, two-thirds of Canadians are now considering going electric for their next vehicle purchase. However, most interested buyers are unable to secure an electric vehicle, according to Bruce Wu, CEO of online electric vehicle sales platform Carnex,
Long waiting times
The Canadian Transportation Agency reported that more than half of Canadian car dealerships do not have electric vehicle inventory. In severe cases, dealers have to wait up to six months to fill back orders. The world’s leading EV manufacturers like Toyota and Nissan have already depleted their 2022 inventory and reached maximum production capacity. The mainstream view attributes the shortage of semiconductors and the inadequate distribution of supply in Canada as the roadblock to the void.
However, Bruce Wu offers another perspective. With seven years of industry experience, Wu said, “Most major automakers don’t see a strong business case for selling electric vehicles in Canada. The automotive industry’s traditional revenue streams come from aftermarket support. Because electric vehicles require less maintenance, there is less money to be made in this regard.
Additionally, Wu believes Canada lacks the robust electric vehicle regulations established in markets like China and the EU.
“Automakers do not have electric vehicle production sites in Canada. If the government refuses to invest in infrastructure and develop stronger policies to support this market, then there is simply no incentive for brands to sell here without monetary or growth incentive,” Wu said.
New brands to fill the void
The federal government had promised to invest C$3.8 billion to secure the battery supply chain for electric vehicles. This investment includes ensuring that manufacturers will get enough raw materials. In addition, the Canadian government aims for at least 20% of new personal vehicles and transport vehicles to be zero emissions by 2026 and 100% by 2035.
Automakers are also stepping up their efforts in Canada. In March, Stellantis and LG announced a $5 billion investment in their battery manufacturing plants in Windsor, Ontario. General Electric also announced in April that it would transform its Ingersoll assembly plant into a full production facility for electric vehicles.
But these long-term strategies do not address short-term problems. “We recently saw LUCID and Vietnamese electric vehicle company VinFast open their first experience stores in Toronto,” Wu said.
Wu believes Canadian consumers have a strong desire to buy EVs. Canada needs to embrace global brands, especially those from China, to meet strong demand.
“China is the world leader in electric vehicle technology. In 2021, the country manufactured more than 294.2 million fully electric vehicles, representing almost 50% of global production. Political disputes aside, Chinese brands can stand on their own in Canada and provide greater choice for Canadians. »
NIO, XPeng, Lynk&Co and several other Chinese electric vehicle brands plan to expand their brands in Europe, where there are mature policies supporting the industry. Their interest in expanding globally is heightened after seeing BDY Auto’s successful entry into the Australian market and MG’s strong sales. Chinese electric vehicle makers are leading the way in digital experience, customer service and cost management. Compared to the era of combustion vehicles, electrification and digitalization have presented a vast opportunity for Chinese brands to thrive on the global stage. Carnex believes that Canada should build stronger relationships with Chinese innovators and bring their products to the Far North.
Carnex.ca is Canada’s leading e-commerce platform for used electric vehicles, headquartered in Toronto, Ontario. Its senior management team has specialized in the automotive industry for more than ten years, mainly in China, which is home to the world’s largest market for electric vehicles.
Carnex’s monthly revenue currently exceeds over C$1 million. He acknowledged that the potential market for EVs is huge, as more and more customers are looking for high-quality and environmentally friendly EV products and services. Therefore, the founders want to enable everyone to access the convenience and benefits of electric vehicles.
To that end, Carnex.ca is committed to providing customers with electric vehicle knowledge, as well as meeting consumer needs with after-sales service capabilities, such as electric vehicle test drives; technical consultations, while for its local customers in Canada, they also offer a selection of cars online; online loans; online replacement; and home car delivery.
For more details, please check www.carnex.ca.
CONTACT: Bruce Wu Carnex (905) 566-1233 [email protected]