Across North America, one thing is clear: our vehicles are getting bigger. From suburban driveways to commercial fleets, SUVs and pickup trucks continue to dominate the roads - and the sales charts. While electric vehicles are gaining traction, the reality is that larger vehicles aren’t going anywhere anytime soon. So instead of wishing them away, it’s time to ask: how can we make SUVs and trucks part of the climate solution?
A study conducted by the Sustainable Transportation Action Research Team (START) at Simon Fraser University (SFU), found an increase in passenger vehicle and truck sales, growing from 50 per cent in 2010 to 70 per cent in 2022. This trend is not only evident in Canada but across North America, with the U.S. setting a new sales record for SUVs and trucks in 2024, accounting for 75 per cent of total vehicle registrations, according to JATO Dynamics data.
North America’s enduring love for SUVs is hindering efforts to reduce average fuel consumption. According to the Canadian Climate Institute’s 440 Megatonnes project, passenger vehicles contributed approximately 80 megatonnes to Canada’s emissions in 2023, accounting for 11 per cent of the national total. The same SFU study found that if the demand for SUVs had been lower, emissions reductions in Canada would have been 30 per cent greater, bringing average fuel consumption down to 7.2 liters per 100 kilometres instead of the 8.1 liters per 100 kilometres recorded in 2022.
If North America’s preference for SUVs and trucks is here to stay— which, based on the evidence, seems likely— it’s crucial to look at ways we can make it align with our climate commitments. From fleet operators balancing operational demands with the push for cleaner transportation to consumers seeking a vehicle ready for any adventure, we all have a role to play in leveraging this demand to drive sustainable innovation.
To address this challenge with the right solutions, it’s important to understand why North America favors SUVs and larger vehicles in the first place. The most common factors include their association with safety and multipurpose capabilities. However, another key reason is industry influence— automakers respond to consumer demand while also being drawn to the higher profit margins that SUVs offer. A prime example of this is Ford’s decision to remove their sedan models entirely from its North America lineup.
While consumers and automakers are driving this shift, the government also plays a role in creating a regulatory gap in fuel economy standards. Current standards allow for lighter regulations on SUVs and trucks, even though these vehicles require larger amounts of fuel. According to the Government of Canada’s most recent national inventory report, SUVs and trucks produce, on average, about 30 per cent more CO2 tailpipe emissions than cars. This presents an opportunity for policymakers to regulate all vehicles equally.
There are a handful of EV SUVs and trucks now on the market that are working to bridge this gap between consumer demands and climate commitments, but these vehicles, unfortunately, do not consider the big picture. For fleet operators, EV trucks are an expensive solution when looking to electrify an entire fleet, and it also results in significant waste, as original internal combustion engine (ICE) vehicles are no longer used. Additionally, with the 25 per cent U.S. tariff estimated to increase the average price of new Canadian vehicles by $6,000 CAD this year, fleet operators are faced with more hurdles in achieving their climate goals and will need to seek alternative Canadian electrification solutions.
Vehicle electrification presents viable solutions to balance fleet operators’ operational needs while moving closer to their sustainability goals. These solutions include converting ICE automotives into fully electric vehicles by tailoring the batteries, controllers, motor, wiring harness and all other components to fit the vehicle’s original chassis. This vehicle electrification solution can offer fleet operators the opportunity to avoid scrapping their original fleet entirely and rather extend its lifespan to avoid waste. Fleet operators can also benefit financially, saving between $4,500 to $20,000 CAD annually on fuel and maintenance.
Simultaneously, the growing demand for alternative electrification solutions could push policymakers to revisit outdated fuel economy standards and policies, ensuring that regulatory frameworks evolve alongside technological advancements. An example of this provided by SFU START’s study involves re-classifying SUVs as cars rather than light trucks for emissions standards purposes. This would result in the market share of cars sold increasing by four per cent and the share of light trucks sold declining by four per cent. An energy efficiency requirement for EVs could also encourage an increase in supply of smaller, affordable EV models. This study model found the market share of electric passenger cars increasing by nine per cent and the market share of electric light trucks decreasing by nine per cent.
Consumers, businesses, fleets, and governments must recognize that demand for SUVs and larger vehicles are not the problem, but how we power them is. By reinforcing new policies in support of scaling EVs and alternative electrification solutions in Canada, we can align market realities with climate goals and ensure that SUVs contribute to environmental progress rather than remaining obstacles to it.
Writers: Jayney Davidson, Prachi Kumar, Kameela Nash, Charlotte Gilmour (Yulu Communications)
Editors: Anastasia Sukhoretskaya
Design: Zahra Saberi
