Transport Minister Omar Alghabra noted that the Canadian government wants to retool the popular electric vehicle (EV) rebate program to include more vehicles.
This retooling will align the rebates with the kinds of cars Canadians want to buy.
As of right now, the program restricts rebates to vehicles that fall below or at a base price of $45,000. With upgraded features, the max allowed under the rebate is $55,000.
Although the rebate has been popular, most EVs entering the market in the coming years will be well above that base price. Canadians also favour SUVs and pickup trucks over sedans.
However, very few of the currently available EV SUVs qualify, and once the first electric truck hits Canadian streets, it likely won’t fall under the rebate.
“That’s why our government is looking at how the program may be revised to better align with current consumer preferences,” Alghabra said. (via Global News)
The time to retool the rebate is now. Over the next two to three years, more than 40 EV models will become available in Canada. The majority of those vehicles will be SUVs and pickup trucks.
The original iZEV rebate program was to last three years with a budget of $300 million. However, that was extended by another $287 million a year ago. As per Transport Canada, only $48 million remains for the iZEV program.
We are not sure what the retooled program will look like, and the Minister did not provide any details. However, with the growing demand and automakers noting that prices will be high, something should change in the near term for Canadians looking to make the switch to EV.