From home to work and anywhere else in between, Canadians have fundamentally changed the ways they move. Automotive, transportation and mobility businesses — collectively, advanced manufacturing and mobility — can channel these shifts into innovative solutions and new growth if they seek to understand the big picture now. Doing so can generate the kind of agility that’s necessary to succeed in a changing world.
How is mobility changing in Canada?
More than two years into the lingering COVID-19 pandemic, the way Canadians travel looks nothing like it did before. That said, new EY research shows those changes run deep and appear poised to last. The latest EY Consumer Mobility Index shows that in Canada and 18 other countries, travel patterns have transformed, car-buying intent has grown and electric vehicle (EV) interest has hit entirely new heights. What does that look like, and which changes should you keep in mind?
1. People are moving less. Nationwide, overall travel has dropped 18% over pre-pandemic levels. Even more telling: at a 20% decline, Canada saw the greatest dip in work-related journeys of all countries canvassed. That’s huge, especially for the public transportation and micro-mobility categories, among which usage dropped 25% and 30%, respectively.
These patterns reflect broader shifts in consumer behaviour that indicate this lack of travel could be more permanent than it first appeared. For example, the number of Canadians working from home three to four times a week has nearly tripled in the last few years. Employees are now rethinking operating models and flexibility for a new reality where more than half of workers are willing to resign if not afforded the flexibility they desire. Taken together, these numbers point to a future in which Canadians are much more likely to be at home than almost anywhere else.
This raises important questions not only for advanced manufacturing and mobility, but just about any sector that ties into vehicles, infrastructure or transportation.
For instance, how can municipalities adapt capital planning to compensate for public transit systems that generate far less revenue than in the past? Or how could this influence future decisions on the locations of retail fueling and charging stations? Where are the opportunities for sectors to collaborate to build a mobility framework that’s more reflective not of who Canadians once were, but who they are becoming?
2. Cars are in greater demand. Although Canadians are travelling less, they’re increasingly interested in owning a car. Fuelled by a belief that personal car ownership is now key to their own safety and wellbeing, 40% of consumers in Canada intend to buy a car; 60% of them plan to do so in the next 12 months. Important: the correlation between car ownership and personal safety has continued to grow as the pandemic lingers, jumping 16% in Canada since 2021. That’s a big leap. What’s more, as car-buying intent increases, the way Canadian consumers shop for vehicles is transforming in equally significant ways. Digital channels are undeniably gaining prominence — but 61% of Canadian car buyers still prefer to interact with a salesperson at a dealership to gather information.
This new reality underscores key questions for automakers looking to deliver an effective multi-channel retail experience. For instance, how do you balance investments in user-centric digital experiences that deliver just as great an impact as an aptly trained sales force, all at the same time? How will cities accommodate new parking needs for city dwellers who don’t travel often but want their own car at the ready? What does all this mean for towns, regions and cities already years deep into rolling out infrastructure and public transportation plans drawn up before 2020? Are there ways for energy organizations to lean into the shift and help develop this new reality through partnerships or other alliances?
3. EVs are ever more popular. Among Canadians looking to buy a car this year, nearly half say they prefer an EV for their next purchase. In fact, the preference for fully electric, plug-in hybrid and hybrid vehicles has climbed from 35% to 46% in just one year. That means EV interest has reached its highest level in Canada since the industry itself was born.
Although still somewhat behind the world average, the Canadian intent to buy EVs has reached a critical tipping point in the car-buying market. Environmental concerns are a strong motivator. Upfront EV costs are 30% less important to consumers than they were in 2021. And while provincial differences exist, the overall EV industry appears poised to accelerate here in Canada.
All of this reinforces the need to reframe the future of mobility in line with these deepening shifts. That’s true for automakers navigating complex challenges — for example, how to navigate pervasive supply chain breakdowns and manage the impact of increased costs without passing the increases to customers — and other organizations that support the EV industry.
For instance, how can energy companies jump on Canadian consumer preferences to charge EVs at home while also expanding the network to cover the broader charging infrastructure? What kind of cross-sector collaboration will it take to ensure Canada’s grid is ready for increased demand? What does this mean for government agencies planning infrastructure investments that align all these priorities effectively?
Inform future plans with current insight to meet Canadian consumer needs
All of these shifts shine the spotlight on an undeniable truth: the last two years have upended historic patterns that have spanned the better part of the last century. Understanding what that means now can inform better planning and embed greater resilience into the way organizations, businesses and governments evolve to better meet Canadians’ mobility needs going forward.
Whether we’re talking about advanced mobility and manufacturing, government and public sector, or key industries that make up the Canadian energy sector: it’s time to adapt thinking to better navigate where we are now and create necessary resilience for what’s coming next.
