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Luxury auto sales have historically been relatively shielded from economic slowdowns (chart 7). But headwinds have been mounting, notably escalating financing costs as the Bank of Canada raised policy rate to the restrictive territory in an effort to tamp down inflation. Electric vehicles have taken another step toward meeting Canada’s interim target of 20% Zero-Emission Vehicle (ZEV) sales by 2026 and 100% ZEV sales by 2035. In the third quarter this year, battery electric and plug-in hybrid vehicles accounted for more than one-in-ten (12.1%) of all new motor vehicle registrations for the first time at the national level. Absent any shifts in market dynamics or policies, affordability will likely pose a major headwind to meeting Canada’s 100% ZEV sales target by 2035 as noted in the Scotiabank Economics EV affordability report. This report has been prepared by Scotiabank Economics as a resource for the clients of Scotiabank. Neither Scotiabank nor any of its officers, directors, partners, employees or affiliates accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. While the number of women employees in the automotive sector is growing, women are still underrepresented with only 27% of the workforce being women or identifying as women. Content was cre ated by G SA Content Generator DEMO!
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