As North America continues to grapple with the growing sizes of electric vehicles (EVs)—often mirroring the trends seen in the U.S. market—many are questioning whether we truly need new generations of EVs that are bigger and heavier than their gasoline counterparts. This phenomenon, known as “segment creep,” has led to each successive vehicle being larger than its predecessors. In Canada, where winter driving conditions and long distances between destinations are common considerations, this trend raises important questions about practicality, efficiency, and environmental impact.
The debate around larger EVs involves a complex web of regulations, consumer habits, and technological affordability. In Canada, where harsh winters and vast distances are regular challenges, larger vehicles often seem practical for safety and range. However, this approach has significant implications for energy consumption, road wear, and overall environmental impact. With road transportation being a leading contributor to global CO2 emissions, there is a growing push to reconsider the necessity of ever-larger vehicles.
A promising development in this discussion comes from Also, a micromobility startup spun off from Rivian, a well-known American electric vehicle manufacturer. Based in Palo Alto, California, Also is poised to challenge the status quo by introducing smaller, more efficient EVs. This approach could offer Canadian consumers an alternative to the super-size products currently dominating the market.
Rivian maintains a “substantial minority stake” in Also and anticipates future collaboration opportunities, which may include utilising some of Rivian’s retail locations. Also has secured a $105 million investment from the VC fund Eclipse Ventures, with Rivian CEO RJ Scaringe serving as its chairman and board member.
Also plans to launch its flagship product in early 2026, initially focusing on the U.S. and Europe before expanding globally. The company envisions a range of “exciting, small EVs” built on a vertically integrated technology platform. Everything, including motors, batteries, electronics, and software, will be developed in-house, promising a user experience “unlike anything seen in these segments before.”
In job postings, Also has outlined its mission: to inspire everyone to “ride also”—replacing many local car, truck, and SUV miles with vehicles that are more affordable, enjoyable, and 10-50 times more efficient. This is particularly relevant in Canada, where a significant portion of car trips are short. Also highlights that 80% of car trips are 15 kilometres or less, and half are under 6 kilometres—distances perfectly suited for smaller, more efficient EVs.
For Canadian consumers, adopting smaller EVs could be financially advantageous. Canada offers various incentives to promote EV adoption, including federal iZEV (Innovative Zero-Emission Vehicle) incentives and provincial rebates. For example, Ontario offers rebates of up to $4,000 through the Drive Clean Rebate and Incentive Program, while British Columbia provides a rebate of up to $4,000 for eligible zero-emission vehicles. These incentives, combined with the potentially lower cost of smaller EVs, could make this new generation of vehicles very appealing.
Rivian itself is also moving towards smaller vehicles, recognising the market demand for more compact and affordable EVs. The upcoming $45,000 R2 electric SUV, set to arrive in 2026, and the smaller R3 and R3X rugged hatchbacks, will offer Canadian consumers additional options. These vehicles could appeal to those looking for a more manageable and cost-effective EV without sacrificing Rivian's renowned quality and performance.
Additionally, Rivian is involved in a $5.8 billion joint venture with Volkswagen. This partnership will result in a new Rivian-based zonal architecture for future VW Group EVs, potentially bringing more efficient and compact EVs to the Canadian market.
As Canada continues to embrace electric vehicles, the concept of smaller, more efficient EVs presents a compelling alternative to the ever-growing sizes of today’s vehicles. Companies like Also, and even established manufacturers like Rivian, are recognising the potential benefits of this approach—not just for environmental sustainability, but also for offering consumers more practical, affordable, and enjoyable driving experiences. With Canadian pricing, iZEV incentives, and provincial rebates making smaller EVs increasingly accessible, the future of electric mobility in Canada may very well be smaller and more efficient.