Lagging EV interest a ‘bump in the road’ for auto manufacturers

An EV charging station in downtown London, May 12, 2025 (Reta Ismail/CTV News London)

In wake of Honda Canada’s decision to pump the brakes on its electric vehicle project, an auto expert believes the industry still has reason for optimism.

Dr. Peter Frise, a professor of mechanical and automotive engineering at the University of Windsor, said the high upfront costs and infrastructure challenges.

“A fairly straight-line consequence of slower than expected uptake of EVs in the marketplace,” Frise said of Honda’s decision.

On Tuesday, the automotive giant announced it would postpone its $15-billion EV expansion for two years.

Despite a “slow marketplace,” Frise said he believes the plant will reach the production phase.

“Honda will have considered the decision to make an investment in Canada very carefully, and I’d be very surprised if they would abandon it altogether,” Frise said.

In recent years, Canada has placed historically large bets on success in electric vehicle manufacturing.

Through financial incentives and tax breaks, the federal and provincial governments have touted success in getting Honda, Volkswagen and Stellantis to build EV-related manufacturing facilities in Ontario.

Speaking on AM800 CKLW’s Mornings with Mike and Meg, automotive insider Greg Layson said government’s have tried to “fast-track” consumers to electrification.

“It’s just not going to happen as quickly as governments want it to,” said Layson, the digital and mobile editor at Automotive News Canada.

“When you take away incentive EVs, people aren’t going to buy EVs as fast as you want them to because there’s still a price gap.”

According to a recent survey from Auto Trader, Canadian interest in purchasing an electric vehicle has declined in three consecutive years.

Forty-two per cent of survey respondents said they’re considering an EV as their next vehicle, down from 46 per cent last year. In 2022, 68 per cent said they would consider buying an EV.

Compared to other nations, Frise said Canada has positioned itself to be a leader in EV manufacturing based on the large investments made.

“I don’t think that lead is going to disintegrate. I think this is a bump in the road,” Frise explained.

In Windsor, the NextStar Energy battery plant, which required $15 billion in tax breaks from government, is nearing completion.

When reached for comment, a spokesperson for NextStar referred CTV to a recent news release regarding plant production.

“NextStar Energy has been producing battery modules since fall 2024 and plans to begin cell production later this year. Once complete, the facility will be the first large-scale domestic battery manufacturing facility in Canada,” the release states.

While the plant won’t face the same delays as Honda, Frise said it could take longer than anticipated to meet staffing and production targets because of lagging demand.

“I think it will take longer for the NextStar plant and the other EV initiatives at play in Canada and elsewhere to reach their full fruition,” Frise said.