EV base price must now be less than $55,000, up $10,000.
SUVs and trucks must be priced from under $60,000.
The Canadian Government is essentially putting its money where its mouth is. Back in late March, it outlined how it is going to ban ICE sales by 2035 and reach net-zero emissions by 2050. The latest details outline EV incentives going forward.
Starting April 25, 2022, Canadian new vehicle consumers will be able to consider EVs with an increased base price compared to the previous program. It will also make concessions for popular vehicle body styles.
The Canadian Government’s website specifies how EVs will benefit from the new plan starting today:
“A car must have a base model Manufacturer’s Suggested Retail Price that is less than $55,000. Higher priced versions of these vehicles, up to a maximum Manufacturer’s Suggested Retail Price of $65,000, are also eligible.”
“Larger zero-emission vehicles (e.g., sports utility vehicles, minivans and pick-up trucks) must have a base model Manufacturer’s Suggested Retail Price under $60,000. Higher priced versions of these vehicles, up to a maximum of $70,000, are also eligible.”
The Honourable Omar Alghabra, Minister of Transport, said: “Helping Canadians make the switch to a zero-emission vehicle is win-win-win: it keeps our air clean, helps people save money on fuel, all while positioning Canada as a leader on building and powering these cars. Today’s announcement is about making sure Canadians have the options they need – whether you want to make your next family car, or your ride to work, a zero-emission vehicle.”
As we know, many auto manufacturers have strategically priced their EVs to fall under the previous $45,000 threshold. Also, EVs are not getting cheaper as predicted meaning that we are frankly concerned that automakers may quickly increase EV pricing.
If you’re in the market for a new electric vehicle, reserving one now (for possible delivery in months) might be a sound financial decision.