Car News

Canadian Federal EV Incentive Helps Drive 30% Surge in Green Vehicle Sales

More than 14,000 vehicles have been purchased through the electric vehicle incentive program implemented by the federal government three months ago, Transport Canada said this week.

Additionally, the program has helped electric and plug-in hybrid vehicle sales jump 30 percent in the first six months of 2019, with EVs and plug-ins representing about three percent of all new passenger vehicles sold so far this year.

Under the federal incentive program introduced in May, buyers of certain electric vehicles can receive up to $5,000 back from the government, while plug-in buyers qualify for up to $2,500 in rebates. Lessees of eligible vehicles also qualify to receive some cash back.

Vehicles with six seats or fewer must have a purchase price of under $55,000 to qualify for the incentive program, while vehicles with more than six seats can carry a price tag of up to $60,000. That limit does not include delivery, freight, and other add-on fees.

"Over the past three months, the Incentives for Zero-Emission Vehicles program have made it easier for Canadians to be part of the solution to climate change while reducing their daily driving costs," Canadian transport minister Marc Garneau said in a statement. "Our Government is proud of the progress made in such a short amount of time to reduce greenhouse gas emissions, and it continues to work towards a cleaner future for Canadians."

Last month, EV advocate group Electric Mobility Canada published a study that indicated electric and plug-in vehicle sales in Ontario were down 54 percent year-over-year in the first quarter of 2019. The non-profit indicated this was in-part due to the abolition of the Ontario provincial EV incentive program in July 2018, as EV sales rose 22 percent nationwide during the same period.