While growth in electric vehicle sales has been slower than predicted in some markets, in Canada it's holding up very well. This past May, the federal iZEV (Incentive for Zero Emission Vehicle) program registered a record number of applications for rebates on purchase of an EV.
Transport Canada reported that in May, applications exceeded the 20,000 mark for the first time this year.
The most popular brand showing up in these requests is still Tesla, ahead of Hyundai and Kia. And the most popular Tesla model continues to be the Model Y, with over 3,000 requests. In second place overall sits another Tesla EV, the Model 3, with some 1,500 requests. The Volkswagen ID.4 came third, with 1,129 requests.
The fact that rebates in Quebec will begin to decrease as of January 1, 2025 is likely having an effect on the number of buyers jumping on EVs eligible for discounts. Quebec accounted for 11,247 applications, or 56 percent of the national total, slightly above its historical average. Ontario and British Columbia rank second and third, with 3,974 and 3,368 requests respectively, representing 19.8 and 16.8 percent of rebate applications across Canada.
It's also worth noting there are more and more electric models on the market, and therefore more eligible products. Two new models appeared on the list of eligible models in May: the Fiat 500e and Honda Prologue. The Mazda CX-70 PHEV joined the list in April.
Among plug-in hybrids, the model most often appearing in discount requests is the Mitsubishi Outlander PHEV - over 1,500 applications were received in May. The Ford Escape PHEV and Toyota RAV4 Prime followed, with 906 and 876 applications respectively.
The more popular the program becomes, the less likely it is to reach its targeted end date of March 31, 2025. And that’s because the Canadian government allocated a finite amount of money to the program. When the funds run out, that’s the end of the program. Unless the government adds more funding.
