This week the provincial government confirmed what it has been hinting at in recent months – as of May 15th, it is hitting ‘pause’ on the CleanBC Go Electric Vehicle Rebate Program.
As our industry braces for the impact of massive auto sector tariffs, we fear the combination of tariffs and the removal of the very successful incentive program will push the price of new or used vehicle out of reach for many British Columbians – negatively impacting consumers, our industry and the economy.
The Rebate Program has contributed a great deal to Zero Emission Vehicle (ZEV) adoption success. BC leads the country in the sale of ZEVs on a per capita basis. Between April of 2015 – and December of 2024, the total number of paid applications exceeded 109,000 – including almost 25,000 in the 2024 calendar year.
When BC’s New Car Dealers began administering the Rebate Program on behalf of the province, it was a collaboration based on the concept of the proverbial three-legged stool. Three key components include 1) point of purchase rebates, 2) convenient and reliable access to fast charging infrastructure where people live, work and socialize, and 3) educating consumers about the latest features and technology so they can arrive at a vehicle choice that best meets their personal needs.
There is a lot to consider when weighing the cost and benefit of an electric vehicle, but typically, price is at the top of the list, and over the course of the Program, when there were lapses in funding, there has been a corresponding dramatic decline in ZEV sales – and we truly hope that government will see the logic in retaining the program.
In light of this latest development, the NCDA is renewing its call to put the brakes on the ZEV mandatory targets and enforcement regime because even the greatest optimist would have to admit the arbitrary targets are now effectively out of reach.
The policy requires 26% of all light vehicles sold by 2026 be ZEVs and 90% of all light vehicles sold by 2030 be ZEVs. The legislative framework includes significant financial penalties for auto makers ($20,000 per vehicle) for failing to meet mandated targets, and that already has some manufacturers reducing the allocation of gas vehicles into the province in order to meet the arbitrary ZEV mandate quotas. Limiting inventory means a higher price point for all new and used vehicles, as we experienced during the COVID pandemic. This as tariffs make the cost of vehicles for BC consumers even higher – a brutal double whammy!
A recent forecast from DesRosiers Automotive consultants found that the province’s target of 90% ZEV sales by 2030 is not achievable. The best-case scenario, which does not include significant trade disruptions brought on by tariffs, would have ZEV sales increase to 57% in 2030.
By keeping its foot on the mandate accelerator, government will be inviting unintended consequences that will negatively impact the economy, our sector, and most notably, consumers.
We understand and appreciate the financial challenges facing the province, but it’s unfortunate they have removed an ongoing commitment to clean energy vehicle adoption because it can’t all be on the backs of vehicle manufacturers which have invested billions into the technology.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].
