B.C. lowers rebate cap on electric vehicles, triggers industry backlash
On June 18, 2024, British Columbia reduced the rebate cap for electric vehicles from $55,000 to $50,000, limiting the $4,000 rebate to cheaper models. This move has faced criticism from Canadian automobile industry leaders, who argue it was made hastily and will negatively impact consumers and the economy. Despite this, B.C.’s Energy Minister Josie Osborne says the change was necessary due to high EV sales and that other incentives will continue to support the transition to electric vehicles.
Canada takes step toward boosting tariff regime on Chinese EVs by announcing consultation
On June 24, 2024, Canada began a 30-day consultation to consider increasing tariffs on Chinese electric vehicles (EVs). Deputy Prime Minister Chrystia Freeland said China’s oversupply undermines global EV producers. The consultation aims to protect Canadian auto workers and maintain high labour and environmental standards. This follows similar moves by the U.S. and Europe. The outcome will shape Canada’s response to perceived unfair Chinese trade practices.
No sign of an EV backlash among vehicle buyers in Canada
Despite challenges in the electric vehicle (EV) industry, including declining Tesla sales and reduced production targets by other automakers, Canadian consumers are increasingly opting for low-emission vehicles. In the first quarter, EV registrations in Canada, including full electrics and plug-in hybrids, rose by 53% compared to the same period last year, totaling 47,000 new EVs. This represents 11.3% of all vehicle registrations, up from 8.6% a year ago. In contrast, EV growth in the U.S. has stalled, with EVs making up only 7.3% of vehicle sales in the first quarter.
Canada's EV rebate program hits record as Tesla dominates claims
Canada’s federal EV rebate program has gained popularity since 2023, with Tesla leading in claims. The program offers up to $5,000 for battery-electric vehicles and plug-in hybrids (PHEVs). In April 2024, the program received 19,162 claims, a record high. Despite this, EV market growth shows signs of slowing, with zero-emission vehicles accounting for 11.3% of overall light vehicle registrations in the first quarter of 2024, down from a peak of 12.3% in Q3 2023.
