It’s one step forward and a big step back for the adoption of electric vehicles in Québec, according to the Canadian Automobile Dealers Association (CADA) and other dealer associations.
This week the Québec Finance Minister Eric Girard tabled its 2024/2025 budget that would see the province scrap subsidies for electric vehicles in the province by 2007, with a phase out happening over several years starting in 2025.
The government said with more widespread EV adoption in the province the incentives were no longer needed, saying there are now many EV models available for consumers, and the charging network is more robust.
The reaction from groups representing automotive dealers was swift and pointed. “It’s bad news,” said Ian Sam Yue Chi, President and CEO of the Corporation des concessionnaires d’automobiles, in an interview with the Toronto Star. “It will slow adoption, so we might not meet the targets that had been set by the government. As well, we’re worried about the issue of vehicle affordability, removing these incentives will ultimately make buying vehicles more expensive for Québecers.”
In a statement, CADA urged the government to keep the incentives in place, arguing it’s not helpful to impose ZEV mandates, but not help consumers along the way during the transition.
“CADA calls on the Québec government to reconsider its decision and recognize the importance of electric vehicle purchase incentives as an important tool in achieving the province’s environmental goals, while addressing consumers’ legitimate concerns about affordability and accessibility. It is imperative that we work together to build a more sustainable and affordable future for all Québecers.”
In 2024, the rebates for fully electric vehicles are $7,000. That will drop to $4,000 in 2025, $2,000 by 2026 and to zero in 2027.
In 2024, the incentives on plug-in hybrid vehicles are $5,000. Those would drop to $2,000 by 2025, to $1,000 by 2026 and to zero by 2027.
“This budget proposes to turn back the clock by putting forward an approach similar to that of provinces that have barely begun the transition to electric vehicles,” said CADA. “Essentially, this decision seems to mean that the Québec government, with its restrictive, mandatory ZEV standard, inevitably expects a transition, and that helping consumers to take part in it is no longer a priority.”
In its statement, CADA points out that the two provinces with the highest adoption rates of EVs are B.C and Québec — the provinces with the most generous incentive programs.
CADA also challenged the government’s assertion that the price differential between electric and ICE vehicles is now marginal. “Impact assessments conducted and adopted by the federal and California governments have shown that price parity will not be achieved at least until 2033.”
