The federal government plans to restore electric vehicle rebates for consumers, Environment Minister Julie Dabrusin announced Tuesday, as officials seek to address a sharp decline in EV sales.
“There will be a consumer rebate,” Dabrusin told the House of Commons during question period, though she declined to provide details about timing or funding levels.
The announcement comes as electric vehicle sales have plummeted since Canada ended its Incentives for Zero-Emission Vehicles program in January. EV market share dropped to 8.11% in the first quarter of 2025, down from 16.5% in the fourth quarter of 2024, according to Statistics Canada data.
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The federal program, which provided up to $5,000 rebates for eligible vehicles, ended January 13 after the government said it had committed all available funding. The program spent nearly $3 billion supporting more than 500,000 vehicle purchases since launching in 2019.
Canada requires automakers to ensure at least 20% of new vehicle sales are zero-emission by 2026, rising to 100% by 2035. Industry experts say the current sales trajectory makes the 2026 target increasingly difficult to achieve.
“Right now, the Liberals have a mandate in place that makes it so that Canadians will have to buy EVs. But that does not fit the needs of Canadian families,” Conservative MP Rachel Thomas said during question period.
Several provinces have also scaled back or ended their EV incentive programs. Quebec suspended its rebate program in December but restored it in April with reduced funding of $4,000, down from $7,000. New Brunswick will end its program July 1, while Newfoundland and Labrador concluded its rebates in March.
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British Columbia continues offering rebates up to $4,000 subject to income requirements, though it’s unclear how much funding remains available.
The Liberal government’s election platform suggested it would look for ways to reintroduce the $5,000 rebate program.
Auto manufacturers have called for the government to repeal the sales mandate, saying EV adoption dropped in early 2025 as rebates ended.
Electric vehicles remain more expensive than gas-powered equivalents. The first quarter of 2025 saw zero-emission vehicles represent 8.11% of new vehicle sales in Canada, a drop from 16.5% in the fourth quarter of 2024.
Monthly EV sales never dropped below 10.65% through 2024, peaking at 18.29% in December before falling to 7.53% in April 2025.
“Will it be named, iZEV? That I can’t tell you. But there will be a consumer rebate,” Dabrusin said, though she did not specify details about the program’s structure.
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One Response
Rediculous. EV’s have had enough taxpayer support to stand on their own. If the government wants more EVs, enable Canadians to buy Chinese EVs without 100% Duties. Governments need to stop picking technological winners, as they have no clue. Otherwise, where is the rebate for the best solution for today, non-plugin hybrids.