Quebec will end EV purchase incentives in which market testing can be proven

The Canadian province of Quebec—widely seen as the “California of Canada” when it comes to EVs and EV policy—plans to end its EV purchase incentives.

Quebec currently offers incentives of $7,000 for new EVs and $5,000 for new plug-in hybrids, as well as up to $3,500 (all amounts are in Canadian dollars) for used EVs. But the amount will start decreasing next year until the incentives are completely removed. CBC reported.

Beginning January 1, 2025, the $7,000 incentive for new EVs will drop to $4,000. It is then planned to drop to $2,000 in 2026 and disappear entirely in 2027. The plug-in hybrid incentive is $2,000 in 2025, $1,000 in 2026 and nothing in 2027.

2024 Volkswagen ID.4

The incentive was expected to be cut to $1,000 at some point, but this sudden transition was unexpected and could affect EV affordability in the short term, the Canadian publication said. Electric Autonomy Notes. It’s a surprise move for EV-friendly Quebec that has come into effect Canada’s first zero-emission vehicle regulation In 2016 and A A huge Northvolt battery plant Currently under construction.

Canada’s federal iZEV incentive program will expire in March 2025. That program included pricing requirements that led to Tesla Produce a 94-mile Model 3 compensation to qualify for that incentive.

A rendering of the Northvolt Six battery factory in Quebec, Canada

A rendering of the Northvolt Six battery factory in Quebec, Canada

The phasing out of these incentives could prove a market test for EVs. Quebec-based news outlet, Le Journal-TVA Nouvelles (via Le Journal de Montreal) found that one in four Quebecers who planned to buy an EV would no longer do so without incentives. Only 6% of survey respondents said they would continue with plans to buy an EV, while 34% said they would reconsider and 20% said they would look at lower-cost models.

Canada announced a mandate for all sales in 2023 Plug-in or fuel cell by 2035. But most of the EV ramp-up will have to achieve that goal without purchase incentives.

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