There are only about 16,000 subsidized EVs left in Canada.
That’s because the federal government’s rebate program is running low on funds. When they run out, Canadians will have to pay thousands of dollars more for a new electric vehicle.
And at the rate EVs have been selling, those subsidies will be gone in a matter of weeks.
“Canadians who want to make the switch to electric mobility are left with very little time to take advantage of the incentive,鈥 said Daniel Breton, president and CEO of Electric Mobility Canada, in a statement.
”(This) is the exact opposite of a predictable and sustainable program for consumers and industry.”
Breton and other EV backers have been calling for the federal government to commit more funds to the program so it would continue to encourage Canadians to purchase EVs, both as a way to lower carbon emissions and to save them money.
Keeping Chinese EVs out of Canada will have quantifiable聽costs that haven’t been widely acknowledged, the data shows.
Keeping Chinese EVs out of Canada will have quantifiable聽costs that haven’t been widely acknowledged, the data shows.
The government’s EV rebate program, called iZEV, has been wildly popular, handing out nearly $3 billion to more than half a million EV buyers since 2019. It has helped popularize zero emission vehicles (ZEVs), which include both battery electric and plug-in hybrid vehicles that qualified for $5,000 and $2,500 rebates, respectively.
Sales of ZEVs have grown more than sixfold over the past five years, rising from fewer than 12,000 vehicles sold in the first quarter of 2019 to more than 75,000 in the third quarter of 2024, the most recent period for which numbers are available. Zero-emission vehicles now make up 14.2 per cent of new cars sold nationwide, according to Transport Canada spokesperson Sau Sau Liu.
This is very close to the legal mandate for EV sales of聽20 per cent in 2026.
The program was scheduled to run until聽March 31, 2025, and will likely run out of money before then, Liu said.
A family that ditches natural gas-burning appliances and gas-powered cars would save between $550 and $777 per month, a new report from聽Clean
A family that ditches natural gas-burning appliances and gas-powered cars would save between $550 and $777 per month, a new report from聽Clean
鈥淭he federal government鈥檚 Incentives for Zero Emission Vehicle program has been fundamental to helping Canadians access the huge cost saving benefits of EVs. Its termination represents a big oversight 鈥 both in terms of support for Canadians in tough financial times and for our growing EV industry,” said聽Joanna Kyriazis, director of public affairs at Clean Energy Canada, an environmental think-tank.
The federal and provincial governments have committed to more than $50 billion in public subsidies for the EV supply chain聽in an effort to attract new industrial activity and turn around the country’s flagging auto manufacturing sector.
“Pulling the rug out from under the incentive program represents a short sighted approach 鈥 we are making it harder for Canadians to buy the very cars they are invested in making. And we are raising more barriers for our still vulnerable industry, from critical minerals to manufacturing, to compete in a world rife with fierce international competition and increasing protectionism,” Kyriazis said.
“Coupled with tariffs restricting imports of cheaper Chinese-made EVs, future EV buyers could be faced with higher sticker prices at exactly the time where EV savings matter the most,” Kyriazis said.
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