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Lawrence National Centre for Policy and Management · Yaoyu Yu, MSc '24 Student

Honda Canada CEO Jean Marc Leclerc Shares Insights on Canada’s EV Industry at Ivey Business School

Oct 23, 2024

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Jean Marc Leclerc, President and CEO of Honda Canada, delivered a keynote address to students at Ivey Business School focusing on the adoption of EVs and the dynamics of the Canadian automobile industry. Outlining Honda’s ambitious EV production plan in Canada, as part of its sustainability-driven "Triple Zero Mission," Leclerc also discussed key opportunities and challenges around establishing a robust EV supply chain,  as well as adoption policy imperatives, especially around charging infrastructure.

Leclerc’s visit to Ivey, organized by the Lawrence National Centre for Policy & Management (LNC), included meetings with Dean Julian Birkinshaw and a research team focused on Canada’s emerging EV industry. The team, who’s important work is supported by a SSHRC Insight Grant and Ivey’s Critical Issues Fund, is led by faculty members Gal Raz and Romel Mostafa, and includes Jeff Boichuk, Shannon Rawski, and Warren Ritchie, along with PhD, MBA, MSc, and HBA students, and LNC staff. Leclerc’s keynote was incorporated into Professor Gal Raz’ MSc sustainability class, who also moderated a fireside chat after the lecture.

Honda’s proposed $15 billion investment in Canada encompasses the most comprehensive supply-chain integrated plan for manufacturing EVs to-date by a foreign company. Leclerc explained the rationale behind this decision, citing Canada’s competitive advantages in its historical strengths from a robust manufacturing base to critical mineral resources, a skilled labour force, proximity to larger markets in the south and supportive governments, especially in attracting foreign direct investments in this sector. The Federal and Ontario governments together have pledged about $5 billion towards this proposed, integrated investment by Honda.

In keeping with its Net Zero commitment, the Canadian government has also set ambitious EV sales targets, requiring 60% of all new cars sold to be zero-emission vehicles by 2030, and 100% by 2035. However, the EV adoption rate in Canada remains low. A key challenge lies in the development of sufficient charging infrastructure—both in residences and public places.  Leclerc highlighted the behavioural implications of limited infrastructure on buyers’ decision to purchase EVs, noting charging anxiety remains a key deterrent to adoption.

Additionally, most EV models designed for mass market are yet to reach profitability, and they still have an appreciably higher price range than the comparable internal combustion powered models.  The federal government offers incentives, and in Quebec and BC additional incentives are provided by their respective governments; however, the former province is phasing out their EV purchasing incentives starting from next year through 2027.

Leclerc discussed the challenges Canada faces in utilizing its abundant mineral resources for EV battery production while balancing the government’s environmental regulations and engagement with Indigenous communities, recognizing their land rights and self-determination. He also touched on the implications of tariffs on China-made EVs on the development of regional EV supply chain and the importance of managing risks considering the broader geopolitical concerns and evolving political developments in the US and Canada.

In his presentation, Leclerc described Honda’s efforts in building strategic collaborations with companies like GM, Sony, and OEMs to establish a domestic electrification and intelligence automobile ecosystem, as well as support EV adoption and charging infrastructure expansion. He highlighted the Chargescape initiative, a program based on V2G (Vehicle-to-Grid) technology that offers rebates to EV owners for peak-time energy use, enhancing the efficiency of the energy supply for EV charging.

Leclerc’s address aligned with classroom discussions on sustainability from a global supply chain perspective, providing an opportunity for students to connect academia with real-world examples. Through an interactive session, he addressed questions from students about the nature of Honda’s partnerships with tech companies, its efforts in consumer education and stimulating used markets for EVs, as well the potential of new business models such as Battery-as-a-Service.

The session provided important context for students to conduct their follow-up exercise which tasked them with examining comparative examples of global practices for EV adoption and present their ideas on how Canada can accelerate EV growth. Students discussed the importance of overcoming infrastructure and supply chain challenges, strengthening collaboration between industry players, improving government policy incentives for both industry and consumers, and ensuring Indigenous involvement in the mining sector.

Yaoyu Yu is a MSc in Management student at Ivey Business School.