Federal budget omits consumer EV rebate despite past ministerial commitments.
ZEV sales in Canada down 30% through August, adding pressure on policymakers.
Industry voices call for clear policy to boost EV adoption amid market uncertainty.
Canada’s federal budget, tabled November 4 by Finance Minister François-Philippe Champagne, made no mention of renewed funding for the Incentives for Zero-Emission Vehicles (iZEV) program, leaving the future of consumer EV rebates unresolved.
While the budget confirmed the Medium- and Heavy-Duty Zero-Emission Vehicles program will end this fiscal year, it did not provide any new support for consumer-focused incentives. The long-running iZEV program, which offered up to $5,000 toward the purchase of a zero-emission vehicle, effectively ended in January 2025 after its funding was depleted during a surge in year-end sales.
In response to inquiries, a spokesperson for the Department of Finance declined to confirm whether a new rebate initiative is planned. Earlier this year, Minister of Industry Mélanie Joly and Environment Minister Julie Dabrusin indicated a possible return of consumer incentives, but no update was included in the federal budget.
Ottawa Confirms iZEV Program is Dead, but EV Rebates Could Still Come Back in a Different Form
The lack of clarity has caused concern across Canada’s automotive sector. According to Statistics Canada, zero-emission vehicle (ZEV) sales declined by approximately 30 % year-over-year through August.
David Adams, president of Global Automakers of Canada, said the absence of any budget allocation suggests rebates are unlikely to return in the short term. He added that the uncertainty may be discouraging potential buyers, who could be waiting to see if incentives return.
Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association, also voiced concern, stating that EV sales show “no sign of recovery” without federal support.
Advocacy group Electric Mobility Canada called the situation “concerning,” noting that consumer rebates are needed to ensure affordability and meet national emissions targets. The group also criticized the phase-out of support for commercial ZEV buyers.
Despite the absence of consumer rebate funding, the federal budget did signal progress on the Electric Vehicle Availability Standard, also known as the EV mandate. Following a 60-day policy review, the government said further steps will be announced “in the coming weeks.” Finance Canada did not confirm whether the announcement will include decisions on rebates.
Source: Automotive News
