Ottawa's sudden end to electric vehicle rebates stuns dealers

The Canadian government's decision to abruptly end a $5,000 rebate program for new electric vehicle buyers has left dealers reeling.

Blacklock's Reporter says the Department of Transport announced on Friday that it will suspend rebates by the end of March or "until program funds are exhausted."

Daniel Breton, CEO of Electric Mobility Canada, expressed his shock at the move, saying, "Our dealers are stunned. Some of these vehicles are on the container ships right now for delivery just as the rebates are expiring. It's a mess."

According to Electric Mobility Canada, approximately $71.8 million remains in the rebate program, enough for around 14,000 new buyers. Breton criticized the government's decision, stating, "This is the worst scenario possible. If they want to have sales targets that are more and more ambitious, it makes no sense to get rid of the rebates."

Breton noted that the cancellation of Ontario's Electric And Hydrogen Vehicle Incentive Program in 2018 led to a disastrous 80% drop in sales. He suggested that the federal government could have gradually decreased the rebate and implemented income testing for buyers instead of abruptly ending the program.

The government has mandated that zero-emission models must account for at least 20% of new vehicle sales by 2026, rising to 60% by 2030 and 100% by 2035.

In contrast, U.S. rebates average up to $9,600 for new electric vehicles and $5,000 for used models.

Industry Minister François-Philippe Champagne acknowledged last October that governments need to work together to increase the adoption of electric vehicles.