Canada halts EV incentives as program runs out of money

Automobile sellers and buyers in Canada are reeling from the sudden end of the federal EV rebate program. According to Transport Canada, the Incentives for Zero Emissions Vehicles (iZEV) scheme is shutting down because the funds allocated for it have been exhausted.

The iZEV helped EV drivers save $5000 when buying or leasing vehicles that qualified. It was separate from provincial rebates, and 546,000 vehicles benefited during its lifetime.

Canada’s EV incentive initiative was meant to run till March 31, 2025. However, Transport Canada said the money earmarked for it dried up faster than projected, thanks to accelerated EV adoption. There is no information yet on whether the program will be restarted.

Several EV makers are stepping up to help EV buyers caught by surprise. Ford, General Motors, Hyundai, and Nissan are offering a $5,000 discount, but this is a short-term arrangement.

Canada has stipulated that 20 percent of new passenger vehicle sales should be ZEVs by 2030, rising to 100 percent in 2035. For context, about 1.86 million new cars were sold in the Land of the Maple Leaf in 2024.