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Starting today, Canadians can benefit from a revitalised federal rebate programme aimed at promoting the adoption of electric vehicles (EVs). The initiative offers up to $5,000 in government rebates for new electric vehicles priced under $50,000, while plug-in hybrids are eligible for a subsidy of $2,500. Despite the excitement surrounding the return of this popular scheme, many auto dealers express apprehension due to unresolved financial claims from the previous iteration.
Fresh Start for EV Incentives
The reintroduction of the federal electric vehicle rebate programme comes at a crucial time as Canada aims to increase its EV infrastructure. As part of this effort, the government plans to install an additional 8,000 charging ports across the country. This initiative is expected to ease some of the barriers to EV adoption, making it easier for consumers to switch to greener alternatives.
However, the enthusiasm among car dealerships is tempered by lingering issues from the last rebate programme. Many dealers are still waiting for reimbursements amounting to tens of thousands of pounds, creating a sense of distrust towards the government’s reimbursement processes.
Unresolved Claims Stain New Initiative
Dean Woods, a sales manager at a Kia dealership in Grimsby, Ontario, is among those feeling the pressure. His dealership is still owed $20,000 from the previous rebate programme after Transport Canada rejected claims for EVs sold in 2024 due to administrative errors. “It’s a little worrisome,” Woods commented. “I’m going to be on top of every claim. Just because I don’t trust the system any more.”
The previous programme ran from 2019 until it was paused in January 2025 when funding was depleted. Even though Transport Canada briefly reopened the programme last summer for claims submission, Woods and others have found the process fraught with complications. Transport Canada has acknowledged that eligible claims submitted prior to the programme’s pause were processed, but many dealers feel overlooked in the rush to roll out the new incentives.
Call for Accountability
Huw Williams, a representative from the Canadian Automobile Dealers Association, highlighted the burden placed on dealerships, which must front the rebate amounts at the time of sale and then seek reimbursement from the government. “Dealers are small, independent businesses,” he said. “Transport Canada has not always shown flexibility to solve the problem.”
With the government now pledging $2.3 billion to support the new rebate programme, Williams argues that it’s essential for Transport Canada to address the outstanding claims from the previous programme. “Let’s start it in good faith. Get people, dealers – who had fronted money to consumers – paid, and let’s charge forward together to get EVs across the country,” he urged.
Government’s Response
In a statement, Transport Canada indicated that all eligible claims submitted during the temporary reopening last summer have been honoured, but they have yet to address specific cases where submission errors may have led to rejected claims. The lack of transparency and resolution regarding these issues continues to fuel frustration among dealers who are eager to support the transition to electric vehicles but feel increasingly apprehensive about the government’s reliability.
Why it Matters
The successful implementation of the new electric vehicle rebate programme is crucial not only for the growth of the EV market in Canada but also for fostering trust between the government and the automotive industry. As dealers grapple with unresolved financial issues, the potential for a smoother transition to electric vehicles hangs in the balance. Without prompt resolutions to outstanding claims, the government’s efforts to promote EV adoption could be hampered by a lack of confidence from the very businesses that are essential to the programme’s success. The stakes are high, and the path forward must be navigated carefully to ensure that Canada meets its ambitious environmental goals.
