Canada Considers Reviving EV Rebates in New Auto Strategy
James RileyCanada considers new EV subsidies as PM Carney unveils a national auto strategy, balancing climate goals with recent China trade terms.
The Canadian government is weighing the return of federal subsidies for electric vehicles as it prepares to launch a new national automotive strategy. According to sources familiar with the matter, the administration of Prime Minister Mark Carney is working to balance its climate objectives with a rapidly changing global trade landscape.
A Look Back at the Original iZEV Program
The potential revival follows the suspension of Canada's original EV incentive program, known as iZEV, over a year ago. The initiative, which provided buyers with up to $5,000 toward the purchase of eligible zero-emission vehicles, was halted after its funding was depleted by a surge in consumer demand.
What to Expect from the Broader Auto Plan
The upcoming national strategy is expected to provide clarity on several key issues facing the sector. A senior Canadian official indicated the plan will address not only consumer rebates but also the status of the recently paused federal EV sales mandate. Furthermore, it will tackle crucial topics like infrastructure requirements and how to manage recent interest from foreign investors.
Trade Deal with Beijing Shapes Domestic Policy
This policy shift comes on the heels of a high-profile visit to Beijing, where Prime Minister Carney negotiated new automotive trade terms. During the summit, Canada agreed to lower tariffs on as many as 49,000 Chinese electric vehicles imported annually.
In return for this concession, Beijing committed to reducing or removing its trade barriers on a range of Canadian agricultural exports. The senior official emphasized that the new auto strategy would provide much-needed direction for a sector already facing "extreme pressure" from evolving global trade dynamics.
Cabinet members have not disclosed the potential financial scale of any renewed rebate program. The finalized national automotive strategy is reportedly scheduled for a public release later this month.
