There is movement on the zero-emissions vehicle incentive front, as dealers in Canada will have a month to get their claims in and receive reimbursement from the federal government.
The program, which offered up to $5,000 in rebates for eligible electric vehicles, was paused earlier this year after it ran out of funds. According to CBC, Transport Canada revealed details about the reimbursement in a call on Friday with dealers and said vehicles delivered before the program’s pause on January 12 are eligible.
“Dealerships will be allowed to file a maximum of 25 claims per day, which (Huw Williams, Director of Public Affairs for the Canadian Automobile Dealers Association) said will more than cover the shortfall. He said the largest sum owed to a single dealership is about $600,000,” said CBC in its report.
Global News said EV sales have slipped since the federal program was suspended soon after Tesla submitted rebate claims that totalled more than $43 million for 8,600 EVs. That occurred the weekend prior to the program’s suspension.
“EV sales under the program peaked in December 2024 at 18.29 per cent of all new vehicles sold — the last full month before the program was suspended,” said Global News in its update. “Sales fell in January to 11.95 per cent and slid further to 7.53 per cent in April, according to the most recent data from Statistics Canada.”
But based on a CTV News report, the federal government now has a plan to “repay millions of dollars to car dealerships across the country,” and that the government is “looking at ways to reintroduce a purchase incentive worth up to $5,000.”
Canadian auto dealer will continue to provide updates as details about the potential new program are released.
