By CRM staff
Toronto, Ontario – January 16, 2019 – Connected, autonomous, shared and electric vehicles could cause the loss of more than 48,000 jobs in Canada’s automotive aftermarket by 2051, a new report from the Conference Board of Canada suggests.
“The implications of connected, autonomous, shared, and electric vehicles on the automotive aftermarket have generally been overlooked, despite the sector being a significant contributor to Canada’s economy,” said Roger Francis, director energy, environment and transportation.
“Workforce impacts are among the greatest challenges associated with these disruptive technologies and, as a result, transition strategies for the sector will be required.”
The report highlights that connectivity will have greater impacts than electrification will. But a move towards CASE vehicles could result in an estimated loss of $7.0 billion in GDP, and $5.4 billion in labour income in the aftermarket by 2051.
According to the report, in 2017, the automotive aftermarket in Canada was made up of more than 46,000 businesses, with close to 400,000 Canadians employed in the sector. It generated an estimated $27.6 billion in economic activity.
The introduction of automated vehicles would likely increase the number of vehicles on the road as they would offer mobility options to individuals who previously did not have a licence. However, since connected vehicles allow the dealer to gather data about vehicle performance, owners are likely to bypass traditional aftermarket businesses and take their vehicles to the dealership for maintenance. Connected vehicles could also go longer between regular maintenance appointments.