The budget presented by Quebec Finance Minister Eric Girard yesterday announced the gradual reduction leading to the complete abolition of rebates for the purchase of an electric or hybrid car in 2027.
The announcement comes as a disappointment to the automotive sector, which certainly didn’t expect the knife to fall so quickly and brutally on the Roulez vert program.
As of January 1st, 2025, the provincial rebate will drop from $7,000 to $4,000 for 100% electric vehicles, and to $2,000 for new plug-in hybrids with a selling price under $65,000.
Acquisition rebate for used all-electric vehicles will also drop from $3,500 to $2,000. On January 1st, 2026, the same rebates will be cut in half, before disappearing altogether in 2027.
This program of financial support for the shift to electric vehicles will continue to be backed by a federal rebate of $5,000. The provincial government has maintained the $600 rebate to offset the cost of installing a home charging station.
Quebec justifies its decision by mentioning that it has reached its objective of initiating the electrification of the vehicle fleet on its roads. While electric vehicles remain expensive compared with their electric equivalents, the government considers that the market is approaching maturity. In short, according to the Minister, the price gap between the two options has gradually narrowed.
In an interview with Radio-Canada’s Téléjournal, Ian Sam Yue Chi, President and CEO of the Corporation des concessionnaires automobiles du Québec, disagreed with this assertion, pointing out that parity between the prices of electric and gasoline-powered vehicles had not yet been achieved. He also pointed out that Quebec’s decision will have the effect of slowing down the greening of the vehicle fleet.
“The net result is that the cost of buying an electric vehicle will be more expensive, since we’re cutting a rebate that can’t be offset by manufacturer promotions,” he concluded on Radio-Canada.
The Canadian Automobile Dealers Association (CADA) reacted strongly to the announcement, issuing a press release calling it a step backwards for the transition to an electric vehicle fleet.
“This decision comes at a time when Quebecers are facing a major affordability crisis, making purchase rebates absolutely necessary for the eventual attainment of the ZEV standard imposed by this same government. The removal of incentives risks considerably slowing down the progress made to date.”
In the same press release, CADA invites the Quebec government to reconsider its decision.
The Roulez vert program, launched in 2012, supported Quebec’s goal of having at least two million electric vehicles on the province’s roads by 2030. There are currently some 250,000 electric vehicles on Quebec roads.
Finally, this announcement comes at a time when the Quebec government is expressing concern about Hydro Québec’s ability to meet the increased demand arising from Quebecers’ passion towards electric vehicles.
