B.C. scraps provincial EV rebates permanently amid federal renewal

BC won't bring back rebates

B.C.’s energy minister said the province will not bring back its electric vehicle rebate program, which for years provided up to a $4,000 discount on a new auto.

The province paused its CleanBC Go Electric Vehicle Rebate Program in May, effectively halting up to $4,000 in rebates meant to help B.C. consumers purchase a new battery-powered car. 

The latest announcement appears to make that decision permanent. It comes shortly after the federal government announced it would reintroduce its electric vehicle rebate program within two weeks after a year-long pause. 

Ottawa's re-funded program will include rebates of up to $5,000 for a fully electric vehicle and $2,500 for a plug-in hybrid.

B.C. Minister of Energy and Climate Solutions Adrian Dix hailed the federal government’s decision to renew its EV rebate program—part of a wider set of federal investments—as a move to position Canada as a world leader in electrification. 

That's when a reporter asked whether B.C. would bring back its own EV rebate. 

“We’re going to focus on charging stations,” Dix responded. 

Hybrid vies to dominate alternative drive-trains after rebates removed

During the press conference, the energy minister described B.C. as Canadian juggernaut when it came to EV sales.

But according to data from S&P Mobility, sales of electric vehicles in Canada have fallen sharply after provincial and federal rebates were removed.

By the third quarter of 2025, year-over-year sales of zero-emission vehicles in B.C. cratered by more than 35 per cent, according to a recent report.

The data shows that gas-powered hybrid vehicles made substantial gains over electric vehicles, soaring to 20.8 per cent of new sales by the end of September 2025.

By comparison, electric vehicles accounted for 11.4 per cent of new sales, while plug-in hybrids took 7.1 per cent of the new car market (a combined 18.5 per cent).

The S&P report described B.C. as a “hybrid bellwether” reflecting a national trend. 

B.C. to align with federal move to end EV sales mandate

Budgeted at $2.3 billion, Ottawa's renewed EV rebate program is part of suite of new measures meant to kick start Canada’s electric vehicle industry.

Earlier Thursday, Prime Minister Mark Carney said his government was moving to eliminate the existing federal EV sales mandate and replace it with stricter tailpipe emissions standards.

The sales mandate would have required that 20 per cent of autos made in Canada be electric by 2026, a figure rising to 100 per cent by 2035.

Automakers had balked at the policy—rolled out under former Prime Minister Justin Trudeau—saying the targets were especially unrealistic given softening EV demand following the rebate pauses.

The new emissions standard seeks to drive a similar outcome, albeit on a less ambitious timeline, with new EV sales projected to reach 75 per cent by 2035 and 90 per cent by 2040. 

Speaking to reporters, Dix said B.C. would scrap its sales targets—which had previously been a model for Ottawa—and introduce its own legislation to align with the new federal emissions policy.

“We don’t think there should be two sets of targets. We think there should be one,” said the minister.

New measures follow year of uncertainty

The federal government has yet to release modelling to show how the new policies will impact Canada’s overall emissions. However, in a technical briefing attended by The Canadian Press, government officials said Ottawa still seeks to cut vehicle emissions in half by 2035. 

As of 2023, 12 per cent of Canada’s planet-warming emissions came from the transportation sector.

Auto manufacturers and several environmental groups said they were optimistic about the new measures, many noting they provided needed policy stability after a year of uncertainty.

Joanna Kyriazis, director of policy and strategy at Clean Energy Canada, said the new automotive strategy “prioritizes consumer affordability alongside long-term auto industry competitiveness.”

“Last year, EVs constituted one in four new cars sold globally. Canada has clearly fallen behind, consumers are missing out, and the future of our auto sector has remained fuzzy,” she said in a statement.

“Taken together, the government’s new policy package is therefore a commendable alternative for achieving these same, essential goals.”

She urged the federal government to seek a broader Canada-EU auto pact that would align emission and vehicle safety standards, and open the door for the export of more European EVs to Canada.

A report from the green think tank found that as of September 2025, EU consumers had access to 21 electric vehicles selling for less than $40,000.

“Only one of them is available in Canada,” the report concluded.

Renewed rebate part of 'generational investment' in autos

Following a recent trade mission to China, Carney agreed to import 49,000 Chinese electric vehicles per year into Canada as part of a wider agreement to lower tariffs between the two countries. And while half of those are meant to be under $35,000, none will be eligible under the renewed federal rebate.

That's because the new rebates only apply to vehicles under $50,000 and that are either made in Canada or imported from countries that have a free-trade deal with Canada.

Also part of Thursday’s announcement, Ottawa said it will invest $1.5 billion into electric vehicle infrastructure like charging stations.

The federal government is further looking to introduce a new credit system to benefit automakers that produce vehicles in Canada.

Carney described the measures as “strategic decisions and generational investments” that will help Canadians “build the cars of the future.”

“Canada’s new government is fundamentally transforming our economy,” Carney said, “from one reliant on a single trade partner, to one that is stronger, more independent, and more resilient to global shocks.”

With files from The Canadian Press