BC car dealers criticize government’s pause on EV rebate

The provincial government’s suspension of its electric vehicle (EV) rebate program is drawing criticism from the auto industry.

Auto industry experts say the move will cause zero-emission vehicle demand to nosedive and could drive up prices across the board.

The New Car Dealers Association of BC says the timing could not be worse since the looming U.S. tariffs and strict EV sales mandates already put a lot of pressure on dealerships.

Blair Qualey, president of the association, said the incentive has helped thousands of British Columbians afford the switch from gas to electric since 2011.

The association is now asking the province to ease up on its EV targets and the steep penalties tied to them if it wants to keep the rebate program on hold.

“We are asking the government, if you’re going to do that, then put the brakes on these penalties, this arbitrary system of mandate targets, until everyone gets a chance to sit down and see where all this is going,” Qualey said.

The amount of rebate car buyers in the province are able to receive depends on the annual income of the buyer and whether the purchased vehicle is a plug-in hybrid or battery electric vehicle. The incentive can range from $4,000 to $500.

The current zero-emission vehicle targets, updated by the B.C. government in late November 2023, require carmakers to meet 26 per cent of EV sales in 2026 and 30 per cent in 2030.

According to the Zero-Emission Vehicles Act, passed on May 30, 2019, the penalty for each deficit for carmakers to comply with the B.C. sales target is currently $5,000 but will jump to $20,000 starting with the 2026 model year.