Driving Towards the Future: Reaction to the 2024 Federal Budget

The Canadian Vehicle Manufacturers' Association (CVMA) recently released a statement praising the initiatives outlined in the 2024 federal budget aimed at bolstering the shift towards electrification within the automotive industry. While applauding the support for this transformation, concerns linger regarding the clarity of the government's roadmap to achieving mandated electric vehicle (EV) sales targets.

CVMA's President & CEO, Brian Kingston, emphasized the significant investments made by auto manufacturers, totaling over $30 billion, in EV battery manufacturing and vehicle assembly within Canada since 2020. With a surge in EV market offerings, the focus now shifts to how Canadian consumers with transition to electric vehicles.

In its pre-budget recommendations to Deputy Prime Minister Freeland, the CVMA highlighted affordability and the need for an extensive charging infrastructure as primary barriers to widespread electrification adoption. While welcoming additional funding to strengthen the federal EV purchase incentive program, Mr. Kingston stressed the necessity for long-term financial commitments and a comprehensive strategy to develop charging infrastructure.

Budget 2024 introduces several measures aimed at encouraging the automotive industry's transition to electric vehicles, including the implementation of a new 10% Electric Vehicle Supply Chain investment tax credit and proposed amendments to the Criminal Code to address auto theft.

At Quorum, we're committed to supporting our clients in navigating the changes that continue to happen within the auto industry. As we transition towards electrification, initiatives outlined in the 2024 federal budget signal significant opportunities and challenges for dealerships. For a detailed breakdown of the CVMA's statement on the 2024 federal budget and its implications for the automotive industry, click here to read the full article: CVMA Statement on the 2024 Federal Budget - CVMA