The Canadian government is exploring the reintroduction of incentives for electric vehicles (EVs) and plug-in hybrids as part of its national automotive strategy. Insider sources, speaking on condition of anonymity, revealed that a final decision on the incentives, resembling a previous rebate program, is pending.
Transport Minister Steven MacKinnon hinted at forthcoming updates regarding EV incentives during a recent statement. The country’s previous zero-emissions vehicle incentive program, iZEV, was halted over a year ago due to budget exhaustion after experiencing high demand, offering customers up to $5,000 towards EV purchases.
While Environment Minister Julie Dabrusin had hinted at a revival of consumer rebates in the past, the recent budget under Prime Minister Mark Carney did not explicitly mention EV rebates or funding renewal for the program. A senior Canadian official mentioned that the upcoming auto strategy, due in February, will outline the government’s stance on the paused EV sales mandate, EV infrastructure, and investments from countries like South Korea, Germany, and China.
The EV mandate, which sets targets for electric car sales in the coming years, has faced scrutiny from various stakeholders. Industry Minister Mélanie Joly refrained from revealing the government’s stance on incentives or the EV mandate ahead of a cabinet meeting, emphasizing that ongoing discussions are distinct.
Prime Minister Mark Carney is under pressure to reconsider the stringent EV sales targets, especially after pausing the 2026 targets for a review, citing challenges within the Canadian auto sector. Critics, including Brian Kingston from the Canadian Vehicle Manufacturers’ Association, argue that achieving 100% electric car sales by 2035 is unrealistic without increased government support.
The government is also deliberating potential partnerships to expand the EV charging station network, addressing concerns about insufficient infrastructure hindering EV adoption. Discussions are ongoing regarding potential funding through the Zero Emission Vehicle Infrastructure Program to accelerate the construction of charging stations and enhance accessibility for Canadians.