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.

Just Posted

Storm prompts travel warning for Boundary, West Kootenay

Up to 25 cm expected on high mountain passes

Cops seize load of pot near Salmo

Traffic stop nets hundreds of pounds of cannabis

Lower Kootenay Band Chief Jason Louie receives the Medal of Good Citizenship

Lower Kootenay Band Chief Jason Louie was one of eighteen people from… Continue reading

Traffic Services seizes over 350 pounds of cannabis near Salmo

On Dec. 5 an officer with the Southeast District Traffic Services stopped… Continue reading

Day of Giving returns to the Creston Valley Hospital

The East Kootenay Foundation for Health (EKFH) is hosting the 2nd annual… Continue reading

VIDEO: Octopus, bald eagle battle after bird ‘bites off more than it can chew’ in B.C. waters

B.C. crew films fight between the two feisty animals in Quatsino off north Vancouver Island

Process to identify those killed in Gabriola plane crash could take days

Canadian flight museum suggests Alex Bahlsen of Mill Bay died in Tuesday’s crash

‘Honest mistake:’ RCMP says B.C. cannabis shop can keep image of infamous Mountie

Sam Steele wearing military, not RCMP uniform in image depicted in Jimmy’s Cannabis window

B.C. conservation officers put down fawn blinded by pellet gun on Vancouver Island

Young deer found near construction site in Hammond Bay area in Nanaimo, B.C.

Laid-off forest workers converge on B.C. legislature

Loggers call for action on strike, provincial stumpage

B.C. guide fined $2K in first conviction under new federal whale protection laws

Scott Babcock found guilty of approaching a North Pacific humpback whale at less than 100 metres

Feds urge Air Canada to fix booking problems as travel season approaches

The airline introduced the new reservation system more than three weeks ago

Almost 14,000 Canadians killed by opioids since 2016: new national study

17,000 people have been hospitalized for opioid-related poisoning

Chevron’s move to exit Kitimat LNG project a dash of ‘cold water’ for gas industry

Canada Energy Regulator approved a 40-year licence to export natural gas for Kitimat LNG

Most Read