2024 review: a year of twists and turns marked by electric vehicles

The automotive sector has been full of twists and turns over the past year. The surprise announcement of the temporary suspension of government incentives, the ups and downs of gasoline prices and the attempted breakthrough of Chinese vehicles on the Canadian market attracted attention.

Everything that has directly or indirectly touched on electric vehicles has led to polarizing subjects. The temporary suspension of government incentives took dealers and consumers by surprise. One thing is certain, those who want to buy an electric vehicle or a charging station under optimal financial conditions will have to act quickly.

In recent days, the grant has gone from $7,000 to $4,000. Then, it will be at $0 from the 1st^is FEBRUARY. The envelope for the Roulez vert program was quickly emptied after the announcement of the end of the incentives in March. More than 114,000 requests for financial assistance for vehicles, almost double those for 2023, were authorized in 2024. For the year 2024-25, including financial assistance for charging stations, it is more than $650 million which was given to Quebecers who made the electric switch.

For example, the SAAQ registered more than 40,000 new zero-emission vehicles in July, August and September. This is more than in the rest of Canada. Similar figures can be expected for the last quarter of 2024.

Au 1^is last October, there were more than 335,000 owners, according to data from the Association of Electric Vehicles of Quebec (AVEQ). We remind you that the government is targeting a total of 2 million zero-emission vehicles for 2030. With the madness of the last months of the last year, there will be more than 400,000 electric vehicles in Quebec.

“We wonder what will happen from the 1^is February 2025, mentions the CEO of the Corporation des Concessionaires Automobiles du Québec, Ian P. Sam Yue Chi. This is a worrying element for us.

“In the short term there is rejoicing, but in the long term there is a lot of anxiety. With what we see in California [ralentissement des ventes]why would it be different in Quebec?

Even if interest rates are very low, the prices of electric vehicles remain an obstacle for many Quebec households who have a tight budget.

With the reduction and suspension of subsidies, will customers continue to flock to dealerships in the coming weeks? This is the $64,000 question that has been circulating in the automotive industry for several weeks.

The Chinese ghost

Seeing that sales are interesting in Quebec and Canada, Chinese electric vehicle companies tried to make inroads in Canada, but they were hit with a 100% surcharge like in the United States.

If BYD brand cars succeeded in being sold in Quebec, other manufacturers would find themselves in an uncomfortable position. BYD prides itself on selling electric cars, of all ranges, at very competitive prices.

This would be good news for consumers who regularly mention that plug-in vehicles are too expensive for their means. However, dealers would have difficulty keeping up with the parade due to the prices offered by the BYDs of this world.

We must ask ourselves how long Canada will be able to resist the offensives of BYD and other manufacturers. A standoff that is far from over.

Increases on all levels

Quebec motorists have experienced increases on several levels. This has been noted in particular with regard to insurance and the costs of maintenance and repairs in garages.

The latter have also suffered with the increase in their fixed costs, such as the cost of rent.

“It was a year of challenges,” says Guillaume Martin, who is president of the Association of Tire and Mechanical Specialists of Quebec (ASPMQ).

In terms of price at the pump, consumers still experienced jolts when refueling their cars. Within a few weeks, they saw a difference of 40 cents for a liter of gasoline. And we can expect a similar scenario in 2025.

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Suspension of government incentives

This is one of the major announcements from the Legault government at the end of 2024. This news took everyone by surprise. As of 1^is February, government incentives will be suspended indefinitely. A hard blow for consumers who were hoping to purchase an electric or hybrid vehicle or a terminal. During the month of January, as planned, customers will still be able to benefit from a subsidy of $4,000, or $3,000 less than in December. The incentives will be abolished for 2027. This decision came after a marked increase in sales of electric vehicles in the last six months of 2024. Several experts wonder whether the reduction and suspension of the provincial subsidy will have a negative impact in 2025. We believe that this will be the case because we have noted considerable sales declines in several provinces, states and countries around the world.

The specter of Chinese cars

The possibility of seeing Chinese electric vehicle companies arrive on the Quebec market has caused a lot of ink to flow. Among them, there is BYD, which is a heavyweight in this sector on several continents. Canada and the United States, in particular by imposing a surcharge on vehicles produced in China, are doing everything in their power to thwart the manufacturers’ plans. And the reason is simple. They would arrive with electric vehicles that are much cheaper than those of other manufacturers which are already sold to consumers. You might think that this would cause some chaos in the market.

Increase in garages

Similar to their experience in other sectors of the economy, consumers were not spared when they visited the garage for tire changes, oil changes and other repairs. Once again, consumers saw their bills increase by a few percentage points. The majority of garages have had no choice but to push harder on the pencil due to increased fixed costs, parts and labor. Motor oil in particular has seen a sharp increase in the last two years.

Ups and downs for gasoline

Electric vehicles have been in the news a lot, but the price of gasoline has also made headlines on a few occasions. In April, we remember that the price had increased from $1.75 to almost $1.90 for a liter usually in the Montreal region over the course of one night. Subsequently, motorists had a slight respite a few weeks later when we saw prices below $1.50 in several regions of Quebec. Motorists can expect a copy and paste of 2024 for the next 12 months.

Insurance that hurt

The cost of insurance has also startled many motorists in the past year. They have, among other things, seen their car insurance double and even triple when they renew. Thefts and the significant increase in complaints are the main causes of this situation. And we should not expect a respite, because repair costs, particularly due to the proliferation of electronic parts in cars, will continue to increase the bill for claims. Consumers will need to continue shopping for their insurance on an annual basis.