Pausing the EV rebate program is the wrong move at the wrong time

janeiro 11, 2025

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OTTAWA — Joanna Kyriazis, director of public affairs at Clean Energy Canada, made the following statement in response to the pause of the federal government’s EV incentive program:

“The federal government’s 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—both in terms of support for Canadians in tough financial times and for our growing EV industry.

“A typical Canadian EV driver saves as much $3,000 per year compared to a gas car driver. And while many EV sticker prices are still slightly higher than comparable gas models, in many cases, the federal rebate helped the EV’s fuel and maintenance savings make up for the price difference in just a few months—compared to a few years without it.

“The appeal to Canadians was undeniable. In October 2024 (the month with the most recent data), claims reached an all-time high as families across the country opted to skip gas for cleaner, cheaper electricity. But 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.

“What’s more, Canada has rightly invested billions in our EV supply chain over recent years. Pulling the rug out from under the incentive program represents a short sighted approach—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.

“As we look to the future, we hope any future federal government seeks to reverse the decision. And in the meantime, other policies like provincial rebates and the EV availability standard will be vital to keeping costs down. The latter, in particular, is essential to ensuring automakers bring affordable models to the market in order to meet the requirements.

“With uncertain times ahead, the benefits of EVs are more crucial than ever. And we should be helping more Canadians get behind the wheel.”

KEY FACTS

Since 2020, Canada has attracted more than $46 billion in investments across the EV battery supply chain. The Parliamentary Budget Officer estimates a total of $52.5 billion in corresponding federal and provincial government support.
Canadian EV drivers save about $30,000 to $40,000 over the course of the vehicle’s life compared to driving a comparable gas car ($3,000 to $4,000 per year), according to Clean Energy Canada’s analysis. Put another way, today’s EV drivers pay the equivalent of $0.40 per litre gas to charge their cars.
One in every six new cars registered in Canada was an EV in the third quarter of 2024 (or 16.7% of new sales), breaking a new record. These percentages were even higher in leading provinces of B.C. and Quebec, where EVs made up 25% and 35% of new car sales respectively. S&P Global Mobility expects EVs to account for 19% of new sales in 2025 and 25% in 2026.