Expect more electric vehicles and an acceleration in the advancement of autonomous features in the next five years within the global automotive industry, according to a report from KPMG in Canada — which deals with audit, tax, and advisory services.
Volkswagen is just one example of an OEM seeking to boost EV production, with the automaker aiming for 1.5 million EVs by 2025. If automakers reach their EV targets, KPMG in Canada predicts that by 2025, there could be up to 13 million global electrified (including hybrid) vehicles manufactured annually by the top 12 OEMs — including Tesla.
“Anyone whose livelihood relies on internal combustion engine (ICE) vehicles through manufacturing, service, sales, or otherwise, should be thinking hard about the future, lest they be stuck in an industry of the past,” said KPMG in Canada in its report.
Consumers, they say, are increasingly seeking significant emissions reductions and governments around the world are responding to this push with legislation. Some are even planning to ban ICE vehicles altogether.
In Canada, the Quebec government is targeting a goal of zero emissions vehicles by 2050; in Ontario the government (in 2017) said its plan was to have electric models account for 5 per cent of all vehicles in 2020; and British Columbia wants ZEVs to make up 30 per cent of sales by 2030 and 100 per cent by 2040. These provinces will likely need to revise their goals, particularly in light of COVID-19.
The Government of Canada is investing in EVs and in infrastructure, though more is needed as the country is “significantly behind other nations in EV manufacturing,” said KPMG. Canada accounts for a mere 0.4 per cent share of global EV production.
But with more EVs coming and the advancement of autonomous features, we can expect technological advantages (such as safer and smarter driving, and the potential to solve traffic congestion in urban areas) and an increased demand for well-trained engineers and technical employees specialized in artificial intelligence (AI), robotics, sensors, telecommunications, and more.
“The new breed of cars are basically computers on wheels,” said Peter Hatges, National Automotive Sector Leader for KPMG in Canada. “Yes, we may lose jobs in manufacturing, but we’ll gain them in tech. There will never be a substitute for know-how.”
Read the full report here.
