Tesla Model Y Drives Record-Breaking Performance in Canada’s iZEV Program, Dominating EV Market in 2023

Tesla set a new benchmark in the electric vehicle (EV) market under Canada’s federal Incentives for Zero-Emission Vehicles (iZEV) program, leading the pack with an impressive volume of deliveries last year. At the front was the Model Y, which only became eligible for the incentive part way through the year.

The iZEV program offers a rebate of up to $5,000 for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Tesla’s dominance in the iZEV program was clear as it registered nearly as many qualifying deliveries as the combined total of its three closest competitors.

According to data from Transport Canada, Tesla delivered 43,654 vehicles that were eligible for the rebate program in 2023. This figure nearly quadruples Tesla’s total from 2022 when the Model 3 was the only variant eligible for the rebate, when it accounted for 10,944 rebate claims.

This was more than enough to place Tesla comfortably ahead of other manufacturers, with Hyundai, Toyota, and Chevrolet’s combined sales of 44,751, which includes PHEVs, being nearly equal to Tesla’s total. (via Automotive News Canada)


That meteoric increase of Tesla’s representation in the iZEV program was largely attributed to the Model Y. The Model Y, which was only introduced to the program in late April 2023, quickly became the most rebated BEV, with 26,775 eligible deliveries from May to December. This was followed by the Model 3, which secured the second spot among BEVs with 16,879 eligible deliveries.

Rounding out the top five was the Chevy Bolt EUV (10,906), VW ID.4 (6,444), and Hyundai Kona (5,680).


The overall performance of the iZEV program in 2023 was also noteworthy. The program supported the purchase of approximately 146,000 ZEVs, a massive 151% increase from the 58,000 vehicles that qualified for rebates last year. This surge is a telling sign of the growing public interest for zero-emission vehicles in Canada.

The distribution of iZEV incentives across Canada demonstrated the regional adoption patterns of EVs, and the importance of provincial incentives in increased EV adoption. Quebec, the province with the largest rebate of up to $7,000, led the way with 68,154 eligible vehicle deliveries. Despite having no provincial incentives, Ontario just edged out British Columbia (which has an income-tested $4,000 rebate), for second place by only 306 rebates. Interestingly, even when combining Ontario and BC, their total was still less than that of Quebec.


While BEVs saw substantial growth, the PHEV market also saw notable volume of sales. The Mitsubishi Outlander led the PHEV category with 9,182 eligible deliveries, followed by Toyota and Jeep with the RAV4 Prime and Wrangler 4xe.

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