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.

iZEV incentives by brand

June May 2023 YTD
Tesla 4,099 925 8,105
Hyundai 1,427 1,441 6,249
Chevrolet 1,132 1,234 5,797
Toyota 1,052 1,342 5,442
Ford 856 414 1,829
Mitsubishi 745 867 4,286
Kia 676 861 2,862
Volkswagen 670 398 2,393
Nissan 389 368 1,699
Jeep 308 398 1,670
Chrysler 250 270 997
Audi 240 183 1,028
Polestar 190 266 1,176
BMW 176 160 823
Volvo 145 153 1,059
Source: Transport Canada

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.

iZEV incentives by BEV

June May 2023 YTD
Tesla Model 3 4,096 194 7,186
Chevrolet Bolt EUV 939 1,002 4,612
Volkswagen ID.4 670 398 2,391
Hyundai Kona 518 652 2,824
Hyundai Ioniq 5 431 263 2,028
Ford Mach e 345 93 661
Kia Niro EV 318 354 909
Toyota bZ4X 280 311 1,623
Nissan Leaf 263 197 1,020
Audi Q4 e-tron Quattro 233 178 938
Source: Transport Canada

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.

iZEV incentives by province

June May 2023 YTD
Canada 12,765 9,735 47,521
Quebec 6,677 5,046 24,612
Ontario 3,381 1,986 10,709
British Columbia 1,712 1,922 8,622
Alberta 451 304 1,531
Nova Scotia 136 110 496
New Brunswick 112 124 449
Manitoba 100 90 400
Newfoundland and Labrador 70 53 235
Saskatchewan 53 50 235
Prince Edward Island 44 30 153
Yukon 25 17 71
Northwest Territories 3 3 7
Nunavut 1 0 1
Source: Transport Canada

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.

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