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Canada to Reinstate Electric Vehicle Rebates Following Sales Drop

Environment Minister Julie Dabrusin said the rebates will reverse declining sales, supporting Canada’s push to sell only zero-emission vehicles by 2035.

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Overview

  • Environment Minister Julie Dabrusin confirmed on June 17 that Ottawa will launch a new consumer rebate program to replace the frozen iZEV scheme.
  • The original iZEV program offered up to $5,000 off new EV purchases and was funded for over 546,000 vehicles before running out of money in early 2025.
  • EVs accounted for just 7.53% of new vehicle sales in April, down from 16.5% in late 2024 after the rebate program lapsed.
  • Canada’s zero-emission vehicle mandate requires 20% of new light-duty vehicles to be emissions-free by 2026 and 100% by 2035.
  • Conservative MPs have urged the government to scrap the mandate, citing potential damage from U.S. tariffs on Canada’s auto industry.