Environmental Trends and the Rise of Electric and Hybrid Vehicles in Used Car Markets

The rise of electric vehicles (EVs) and hybrid vehicles in used car markets is strongly influenced by environmental trends and government policies aimed at reducing greenhouse gas emissions. The market share of EVs and hybrids has been growing rapidly, driven by increasing consumer adoption and regulatory mandates targeting zero-emission vehicles (ZEVs).

Key points include:

• Rapid growth in EV and hybrid registrations: Since 2018, registrations of electric and hybrid vehicles have seen remarkable growth, with EV registrations increasing by 48% and hybrids by 21% in 2023, while traditional gasoline and diesel vehicle sales declined by about 2%. In 2024, new ZEVs accounted for 14.6% of new vehicle registrations, marking an 11% increase from 2023, with hybrids also showing significant adoption.

• Government mandates and targets: Federal and provincial policies aim for a substantial shift to zero-emission vehicles, with targets such as 100% of new vehicle sales being electric by 2035 and significant investments to accelerate this transition. Medium- and heavy-duty vehicles are also expected to follow this trend, reaching 50% ZEV sales by 2035.

• Environmental impact considerations: While EVs produce no direct tailpipe emissions and have fewer moving parts, their environmental footprint includes the resource-intensive production of batteries (involving lithium, cobalt, nickel, etc.) and increased tire wear due to higher torque and weight, which contributes to more pollution from tire particles.

• Challenges in consumer adoption: Despite growth, consumer willingness to consider EVs has shown some decline recently, with surveys indicating a rise in shoppers unlikely to consider EVs for their next purchase. Market fluctuations, such as temporary drops in EV sales linked to subsidy changes, also affect adoption rates.

• Impact on used car markets: As new EV and hybrid sales increase, the used car market is expected to see a growing supply of these vehicles. This shift will influence used car values, consumer preferences, and the auto care sector, which must adapt to the different maintenance needs of EVs compared to internal combustion engine vehicles.

Overall, environmental trends and policy-driven mandates are accelerating the adoption of electric and hybrid vehicles, reshaping both new and used car markets with a clear trajectory toward electrification, despite some short-term challenges in consumer acceptance and infrastructure readiness.