The abrupt end of a federal program that gives Canadians money to buy electric vehicles is creating confusion among dealers, automakers and customers, as well as threatening to slow sales in a market seen as a key part of the country’s ambitions. climate of the country.
Last Friday, the federal government announced that the Incentives for Zero Emission Vehicles (iZEV) program would be implemented. “on pause” ahead of its planned March completion dateas funds were running out due to a “surge in interest.”
An update on Monday said the program had stopped completely and there would be no more access.
“To be honest, this took everyone by surprise,” said David Adams, president and CEO of Global Automakers of Canada, a national trade association.
So where does this decision leave Canadians in the market for an electric vehicle in 2025?
$5K refund completed
The iZEV program offered customers up to $5,000 toward the purchase of an electric vehicle, subject to some restrictions. That has effectively spread throughout the country.
If you have recently ordered a vehicle, the government says the documentation had to have been submitted by Monday (January 13) and previously approved by Transport Canada, without exception.
“The problem is with the distributors,” said Adams, who described the government’s communication as irresponsible. “Maybe they didn’t present their papers [because] “Nobody knew the show was going to end on Monday.”
Where in Canada are there still incentives?
Some provinces and territories have their own subsidies, which are an additional discount for electric vehicles on top of the federal incentive. Quebec was the most generous, contributing up to $7,000. But Quebec will temporarily suspend your grant Roulez vert starting next month.
Quebec is “pausing the rebate program for February and March, but it will return in April,” said Daniel Breton, president and CEO of Electric Mobility Canada, an electric vehicle industry association. But when it does, the incentive will be reduced to $4,000, as planned.
Other provinces still offer rebates for electric vehicles. (Note: These subsidies are purchase-based maximums; lower incentives exist for leasing and used vehicles.)
This is the situation across Canada:
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British Columbia: Up to $4,000 subject to income requirements.
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Newfoundland and Labrador: up to $2,500. The program will end on March 15.
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Nova Scotia: Up to $3,000. The program may end once funds are exhausted, without notice.
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Yukon: Up to $5,000including plug-in hybrids (PHEV) with an electric range of more than 50 kilometers.
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New Brunswick: Up to $5,000again subject to the program running out of funds.
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Prince Edward Island: Up to $5,000.
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Manitoba: Up to $4,000with a program end date of March 2026.
In particular, these regions use the additional funds from the federal program as a sales pitch for their own incentives. The Northwest Territories used to offer $7,500, but no longer accepting refund requests. Alberta, Saskatchewan, Ontario and Nunavut do not offer refunds.
Concerns are growing over Quebec’s $7 billion electric vehicle battery plant as demand for the product slows. But some still tout the province’s electric vehicle efforts as a smart, long-term economic move.
“The rebates have helped people who were on the fence take the leap,” said Bob Porter, president of the Vancouver Electric Vehicle Association. Like all cars, EV prices vary wildly, with the entry level in Canada around $40,000 and luxury models topping out at $180,000. according to the Canadian Automobile Association.
Pause or practically permanent?
Experts say the iZEV program has helped boost sales of electric vehicles. Statistics Canada says new sales of electric vehicles They have grown steadily year after year.
“During the third quarter of 2024, EV and PHEV [plug-in hybrid electric vehicles] “Sales were 16.5 per cent,” Breton said, adding that will likely put Canada on track to exceed its mandate that at least 20 per cent of all new car sales be electric by 2026. But Breton expects May the end of the iZEV program alter that. .
“Sales will decline in the first quarter [of 2025]at least, and then we’ll see what happens next.”
The Liberal government’s ultimate goal is for all new cars sold to be electric by 2035. At a news conference on pausing the iZEV program this week, industry groups called for this mandate to be dropped.
Brian Kingston, president of the Canadian Vehicle Manufacturers Association, said “there is no path to 100 per cent zero-emission vehicle sales in the next 10 years with the support being provided.”
There is a lot of uncertainty for upcoming electric vehicles. It is not possible to reactivate the refund soon, since the prorogation of Parliament means that it cannot new money matters you can decide. If there is an election call, there is no guarantee that the next government will continue with the reimbursement.
More immediately, US President-elect Donald Trump has signaled that he will cancel the electric vehicle mandate and US tax credits. Breton says these subsidies are part of an electric future, but they will eventually have to go away.
“We need to make sure the decline is gradual, so people can adapt,” he said. “What we need are predictable policies and programs, so that [the federal government’s recent announcement] In reality it was exactly the opposite.”
