A car is charged at a charge station for electric vehicles on Parliament Hill in Ottawa on Wednesday, May 1, 2019. Transport Canada data shows more than 14,000 electric vehicles were purchased in Canada during the first three months of the federal government’s new rebate program.THE CANADIAN PRESS/Sean Kilpatrick

Electric car sales climb in wake of new $5,000 federal rebate program

Electric cars accounted for four per cent of all vehicle sales in May and June

Canada’s new rebate program to help make electric cars cheaper appears to be showing early signs of stimulating sales but mostly in the two provinces that require a minimum number of electric car sales.

On May 1, Ottawa began offering rebates of up to $5,000 on the purchase of some electric vehicles in a bid to bring the cost of lower-end models closer to that of their gas-powered cousins.

Announced in the March budget, the incentives are part of Ottawa’s goal to increase sales of electric cars to 10 per cent of all vehicles sold by 2025, 30 per cent by 2030 and 100 per cent by 2040.

Last year, electric and plug-in hybrids accounted for about two per cent of total vehicle sales.

Matthew Klippenstein, an engineer who began tracking electric vehicle sales a few years ago on his website Canada EV Sales, said they accounted for four per cent of all vehicle sales in May and June.

It’s still a tiny share — the Ford F-series pickup trucks alone accounted for seven per cent of all vehicle sales — but it is rising. And Klippenstein said the federal rebate “has definitely increased sales in the past couple of months.”

Transport Canada reports that more than 14,000 electric cars and minivans were bought nationwide using the rebate since May 1. The department, which is overseeing the rebate program, also said overall electric vehicle sales were up 30 per cent between January and June, compared to the year before.

But Klippenstein said there is one caveat to the data. More than eight in 10 of the electric vehicles sold in May and June, were sold in British Columbia and Quebec. Those are the only two provinces that have a provincial rebate — Ontario did until last year when Premier Doug Ford cancelled it after being elected — and both allow their rebate to be combined with the federal one for even greater savings.

READ MORE: B.C. Hydro powering up for more electric vehicle charging demand

Even more important to the sales distribution is that both B.C. and Quebec require dealerships to sell a certain percentage of electric cars, Klippenstein said. If they don’t meet the quotas they have to either pay a fine or buy credits from competitors who exceeded their quotas.

Klippenstein said there is still a limited supply of electric cars and those the automakers are sending to Canada are going to B.C. and Quebec first to make sure dealerships hit their quotas.

Dan Woynillowicz, policy director at Clean Energy Canada, said there is still work to do to install public charging stations in the provinces that have never had a rebate. The lack of that infrastructure is contributing to lower sales there.

Transport Canada hasn’t yet been able to provide further details about what kinds of cars were the most popular purchases or sales numbers by province.

The federal rebates are available for fully electric vehicles whose lowest-end model retails for less than $45,000, or $55,000 for vehicles that have seven or more seats like minivans. Up to $5,000 is available, with fully electric vehicles bought outright or leased for at least four years eligible for the maximum. Shorter-range plug-in hybrids or fully electric cars leased for shorter times are eligible for rebates between $625 and $3,750 depending on the length of the lease and the type of vehicle.

Mia Rabson, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Salmo RCMP report drug bust

Fentanyl, methamphetamine and cocaine were seized along with Canadian cash

Nelson Leafs lose to Beaver Valley, will face Spokane in playoffs

Reid Wilson also finished the regular season third overall in scoring

Adapting to love along the Columbia River

One man starts a GoFundme to help his partner with health costs caused on the trip where they met

West Kootenay SPCA hopes you’ll have a heart for Cupid

Cat who tangled with a bobcat seeking a permanent home

Leafs, Nitehawks to decide division title Saturday

The regular season ends in Nelson with both teams tied on points

VIDEO: 2020 BC Winter Games wrap up in Fort St. John as torch passes to Maple Ridge

More than 1,000 athletes competed in the 2020 BC Winter Games

Still six cases of COVID-19 in B.C. despite reports of Air Canada passenger: ministry

Health ministry wouldn’t comment on specific flight routes

Violent ends to past Indigenous protests haunt Trudeau government

Trudeau adopted a more assertive tone Friday, insisting the barricade must come down

HIGHLIGHTS: Day one and two at the 2020 BC Winter Games

Athletes had sunny – but cold – weather to work with in Fort St. John

B.C. money laundering inquiry to begin amid hopes for answers, accountability

Eby argued that most B.C. residents already know the previous government, at best, turned a blind eye

Blockades remain in place as Wet’suwet’en hereditary chiefs returning to B.C.

Hereditary Chief Woos said they are ready to engage in nation-to-nation talks with the B.C.

Tyler Toffoli scores twice, Canucks crush Bruins 9-3

Stecher, Miller each add three points for Vancouver

Most Read