Canadian iZEV program reaches new heights in June thanks to surge in Tesla Model 3 deliveries

The Canadian federal Incentives for Zero-Emission Vehicles (iZEV) program achieved another milestone in June, thanks to a surge in Tesla Model 3 deliveries, which helped propel the program to a new monthly record.

Tesla emerged as a frontrunner in the iZEV program, but it surprisingly wasn’t with the Model Y. In June Tesla delivered 4,096 qualifying Model 3s to Canadian customers, accounting for nearly a third of all eligible zero-emission vehicles delivered. While they weren’t close to the Tesla, other leading brands also made significant contributions, with Hyundai, Chevrolet, and Toyota each shipping over 1,000 eligible BEVs and PHEVs during the same period. (via Automotive News Canada)

Overall, qualifying deliveries totaled an impressive 12,765 in June, marking the third consecutive monthly record for the iZEV program in 2023. In May that number was a little over 10,000. Through the first six months of the year Canadians have purchased 47,521 qualifying ZEVs. That puts Canada on track to surpass its iZEV its entire tally from 2022, when 57,551 qualifying ZEVs were purchased throughout the entire year, next month.

A closer look at the data revealed interesting insights into the market share of various brands. Although Tesla dominated the BEV category, Chevrolet also performed strongly with 939 qualifying Bolt EUVs delivered in June, for a total of 1,132 ZEVs delivered in Canada last month. Volkswagen saw an increase in eligible shipments of its ID.4 crossover, delivering 670 units compared to 398 in the previous month.

Noticeably absent from the list is the Tesla Model Y. According to a review of Transport Canada data by Drive Tesla, just 3 qualifying Model Ys were delivered in Canada in June, down significantly from the 731 that were delivered in May. Considering the strong sales volume of the Model 3, this drop can’t be attributed to the port strike in BC, so we’re not quite sure what happened here. The drop is so significant it could even be a data error, as both the Rear-Wheel Drive (RWD) and Long Range variants are eligible for the federal incentive. We have reached out to Transport Canada to confirm the figure.

The iZEV program’s impact varied by province, with Quebec continuing to lead the way, accounting for approximately half of all qualifying deliveries. Ontario had a surge in deliveries during June, creating a notable gap between it and British Columbia, which has had consistently strong participation in the program.

Under the iZEV program, BEVs and PHEVs with an electric range greater than 49 kilometers qualify for the maximum $5,000 rebate, while PHEVs with a shorter electric range are eligible for a $2,500 rebate. To be eligible for the incentives, passenger cars must have a base price starting at less than $55,000, with higher-cost variants up to $65,000 qualifying for the program. Larger vehicles, such as pickups, minivans, and SUVs, need a base price of less than $60,000, with higher-cost variants starting at less than $70,000. Higher-cost trim levels are excluded from the program.