Title: “Quebec Car Dealers Brace for Electric Vehicle Sales Decline as Subsidies End in 2025”

2024-03-13 01:09:46

Car dealers in Quebec anticipate a drop in sales of electric cars since the Legault government will push the button to end subsidies for these vehicles, from 2025.

• Read also: Subsidized electric cars in Quebec sold in Ontario

• Read also: Girard budget: faced with a record deficit of $11 billion, difficult choices ahead in Quebec

“We are very disappointed. It’s far too early to eliminate the $7,000 given to the purchase of an electric car. Especially with inflation, this risks impacting many Quebec buyers who will instead choose gasoline cars,” laments Ian P. Sam Yue Chi, president of the Corporation of Quebec Automobile Dealers (CCAQ).

Ian P. Sam Yue Chi, CEO of the Corporation des Concessionaires Automobiles du Québec (CCAQ) Photo provided by Ian P. Sam Yue Chi

The Minister of Finance, Eric Girard, announced Tuesday that subsidies for the purchase of an electric vehicle would be gradually abolished. Note that this program, called “Roulez vert”, was established in 2012.

Buyers of 100% electric cars will still have access to the $7,000 rebate for vehicles priced at $65,000 or less. The following year, the subsidy will increase to $4,000, then to $2,000 in 2026. However, this financial assistance will be abolished for good in 2027.

“It’s not impossible that people will buy a lot of electric vehicles in the coming weeks to take advantage of the rebate. On the other hand, in the long term, the impact will be negative and sales will decrease,” explains Mr. Sam Yue Chi in an interview with The Journal.

Electric vehicles - Montreal

2023 Toyota RAV4 Prime XSE AWD presented at the fourth Quebec Electric Vehicle Show in 2023. Nicolas St-Pierre / JdeQ

Manufacturers will suffer

Guillaume André, owner of the family business Simon André Electric Vehicles in Trois-Rivières, says that certain models of electric cars will suffer more in the future.

Electric vehicles - Montreal

Portrait of Guillaume André, owner of Electric Vehicles Simon André Courtoisie

“With this announcement, it is certain that certain brands, whose vehicle delivery takes more than a year, could suffer an impact. People may not want to wait until 2025 to get their car and to ensure they have the $7,000 in 2024,” says Mr. André.

He cites as an example the electric models from the Hyundai and Kia brands, highly coveted by Quebecers.

“We shouldn’t have too much impact with other manufacturers, like Tesla. They deliver their goods quickly and are ready,” notes Guillaume André.

Abuses?

The newspaper revealed last November that electric cars subsidized to the tune of $7,000 in Quebec were being resold in Ontario. In total, 685 Quebecers received this discount several times when purchasing such vehicles.

Electric vehicles - Montreal

Photo Martin Alarie

Would there not have been too many abuses by certain consumers who wanted to make money with public funds from the Roulez vert program?

“We have heard of a few cases, but it is very anecdotal. We are not talking about a generalized problem,” assures Ian P. Sam Yue Chi, of the CCAQ.

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