Canada’s federal Incentives for Zero-Emission Vehicles (iZEV) Program abruptly paused this week after running out of funds, leaving many prospective electric vehicle (EV) buyers scrambling. In response, automakers like General Motors (GM), Nissan, Volkswagen, Hyundai, and Kia have stepped up to offer $5,000 incentives to bridge the gap for affected consumers.
GM’s $5,000 Incentive on Select EVs
GM Canada quickly announced a $5,000 rebate on several 2024 and 2025 EV models, including the Chevrolet Equinox EV, Chevrolet Blazer EV, and Cadillac Optiq. To qualify, vehicles must be delivered by January 31, 2025. This initiative aims to support buyers who were caught off guard by the sudden suspension of the federal rebate.
Nissan Matches $5,000 Rebate for ARIYA Models
Similarly, Nissan Canada is offering a $5,000 rebate on all ARIYA models at dealerships nationwide for the month of January. Highlighting the impact of the rebate program’s suspension, Nissan emphasized its commitment to helping customers who had factored the iZEV rebate into their budgets.
Other Automakers Join In
Volkswagen, Hyundai, and Kia have also announced $5,000 incentives for EV buyers, available until the end of January 2025. This collective response underscores automakers’ recognition of the importance of affordability in driving EV adoption.
Tesla Stays Out, Raises Prices
Tesla has not introduced a similar incentive, and instead raised prices by $1,000 on all Model 3 and Model Y trims. While customers with existing orders are unaffected by the price hike, new buyers who had planned to utilize the iZEV rebate now face higher costs.
What Led to the iZEV Suspension?
The iZEV program, which began in May 2019, had already faced funding shortages but depleted its resources more rapidly this time due to soaring EV demand. With just $71.8 million remaining and EV sales averaging 25,000 units per month, funds were quickly exhausted after a surge in applications. Transport Canada subsequently directed dealerships to stop applying rebates.
Uncertain Future for the iZEV Program
While the federal government has replenished iZEV funds in the past, there is no official indication it will do so again. The looming federal election adds further uncertainty, as a policy shift under a new government could prevent the program’s revival, particularly if the Conservatives, historically less supportive of EV incentives, take power.
Provincial Rebates Still Available
Despite the suspension of the federal rebate, some provinces continue to offer their own EV incentives. Buyers are encouraged to explore these regional programs to offset the cost of purchasing a zero-emission vehicle.
