Canada’s Electric Vehicle Affordability Program (EVAP) continues to attract thousands of buyers each month, but the surge in applications that followed the return of federal rebates earlier this year has begun to level off.
According to the latest Transport Canada data, Canadians submitted 10,364 rebate applications in May and 10,116 in June, well below April’s total of 21,662 applications.
Despite the slower pace, Canadians have now submitted more than 44,700 rebate applications since EVAP launched.
The latest funding figures also show the program has committed nearly $195 million in rebates. EVAP received $2.275 billion in federal funding over five years, and as of July 1, approximately $2.08 billion remained available.
Applications trail iZEV rebate program
While demand remains healthy, application volumes have fallen behind the levels seen under the previous iZEV rebate program.
Combined, May and June generated 20,480 applications, down 37% compared to the same two-month period in 2024, when the iZEV program was still alive and more than 32,000 rebate applications were submitted. (via Driving)
One reason for the slower pace is likely EVAP’s stricter eligibility rules. Unlike iZEV, which based eligibility on a vehicle’s manufacturer’s suggested retail price (MSRP), EVAP requires the final transaction price to be below $50,000. That means options and accessories can push a vehicle above the threshold, making it ineligible for the rebate even if its base model qualifies.
Several automakers have responded by adjusting vehicle pricing to meet the new requirements, including Tesla, who bundled in several fees so the entry-level Model Y could be eligible.
Toyota leads while Tesla remains limited
Transport Canada’s data also reveals which vehicles are proving most popular with rebate applicants. The Toyota bZ leads with 6,013 applications, followed by the Toyota Prius Plug-in Hybrid (4,842) and Chevrolet Equinox EV (4,402).
Tesla has accumulated 1,009 rebate applications since EVAP returned. That low figure is due to the company having just one eligible model, the Model Y Rear-Wheel Drive (RWD) from Germany. Tesla’s lower-priced Model 3 Premium RWD doesn’t qualify since it comes from China and falls outside EVAP’s free-trade agreement requirements.
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