Mr. Chair, members of the committee, thank you for inviting me to speak today.
EVCO is a volunteer-led, non-profit organization that was founded almost 50 years ago. EVCO is not affiliated with the industry, so we're truly an independent voice that brings a pragmatic view based on science and economics. I'm here to represent the voice of ordinary Canadians and EV owners across the country.
The electrification of transportation and, indeed, much of the rest of the economy is inevitable for economic reasons. It's simply cheaper to run on electricity. It's an economic argument. Either Canada leads on electrification or we are led. Being led means that the Canadian auto industry will continue to shrink and become irrelevant, with many lost jobs. We are already seeing an auto industry wherein vehicle assembly has declined from $2 million in 1997 to $1.3 million in 2024. The U.S. administration—as mentioned before—is worsening the problem by actively trying to shift jobs to the U.S.
Leading, however, would mean expanding an auto industry and providing good jobs for hard-working Canadians. It also means other opportunities in adjacent industries, as illustrated by electric aircraft for Harbour Air in B.C. and other projects across the country. The U.S. has decided they will be followers. That gives us a unique opportunity to be leaders here in North America.
Transitions are hard, and incumbents resist change. Kodak invented digital photography, but they still went bankrupt. In my IT career, I've lived through a number of different transitions, all of which were challenging. I know how difficult and gut-wrenching it can be to face a transition with an uncertain future and my job at risk. We can't forget to support the workers and the communities that will be inevitably affected.
There are many examples of the auto industry telling us that policy will damage or destroy the industry. Seat belts, airbags, catalytic converters and many other technologies faced significant resistance. The role of policy is to create predictability and a level playing field that allows adoption to proceed and society to benefit.
The EVAP will help stimulate demand and improve affordability. There are clear signs that manufacturers have responded by reducing prices and increasing incentives to allow their vehicles to fit under the $50,000 maximum price. The corresponding tailpipe emissions regulations are crucial to getting the supply we need to meet that demand.
OEMs are shipping EVs where they are compelled to ship them. Here in Canada, that means B.C. and Quebec, the only two provinces with EV sales targets. Until very recently, it was impossible for an Ontario resident to buy Toyota's only EV, the bZ4X. Toyota would only ship to B.C. or Quebec. Another example is Ford. The last consumer EV that Ford introduced—a full five years ago—is now the discontinued F-150 Lightning. Ford currently has only the Mustang Mach-E on offer. How can they seriously claim that they're having difficulty meeting ambitious targets when they don't have product to meet a target?
Meanwhile, in Europe, in addition to the Mach-E, Ford has the Puma Gen-E, the Capri and the Explorer. They're able to meet European targets. Cadillac's Canadian sales in Q4 2025 were 50% electric. Yes, one in every two cars sold by Cadillac in Canada in Q4 2025 was electric. Speaking of GM, they have 10 different EV models on offer in North America. Ford has one. This supply problem is why we need a strong EV policy. We need manufacturers to bring product to Canada.
Canada has many opportunities tied to electrification. Heavy-duty vehicles are emerging and now account for over 50% of sales in China. PACCAR, the manufacturer near Montreal, already offers class 8 electric trucks in Europe. They could sell them here. I already mentioned that battery improvements for electric aircraft mean that electric short- and medium-haul flights will be feasible in the near future. Canada has an extensive aerospace sector that could seize the opportunity. The sourcing and processing of materials needed for batteries, as well as the manufacturing of batteries and battery packs, are other areas where Canada could and already does leverage strengths.
Canada should be bold and look to the future to seize the moment so that we can all benefit from electrification.
Thank you.