The federal electric vehicle (EV) rebate program has been relaunched today, with Canadian auto dealers expressing concerns over unreimbursed funds from the previous program. Canadians can now receive up to $5,000 in rebates for EVs under $50,000 and $2,500 for plug-in hybrids. While dealerships welcome the return of the program, they remain cautious as the government’s reimbursement portal won’t be active until April.
Dean Woods, a sales manager at a Kia dealership in Grimsby, Ont., voiced unease over the situation, citing a lack of trust in the system due to unresolved issues from the previous program. Woods revealed that his dealership is owed $20,000 from the prior program, with Transport Canada refusing reimbursement for EV rebates sold in 2024.
Upon further inquiry by Woods and submission of supporting documentation, Transport Canada acknowledged an error in the submission process, attributing the oversight to a closed program. Under both the old and new incentives programs, dealerships are required to apply rebates at the point of sale and later seek government reimbursement.
Huw Williams from the Canadian Automobile Dealers Association emphasized the financial burden placed on dealerships, urging Transport Canada to address outstanding reimbursements promptly. Williams highlighted the challenges faced by dealerships in navigating the reimbursement process and stressed the need for timely payments to ensure a smooth transition to EV adoption nationwide.
The initial EV rebate program operated from 2019 to 2025, with funding depleted in January 2025, prompting a temporary pause. Transport Canada briefly reopened the program last summer to address outstanding claims. The department assured that all eligible reimbursement claims submitted during the program’s operation have been processed, but did not provide clarity on cases involving submission errors hindering claims.
With the relaunch of the incentive program and a dedicated budget of $2.3 billion, stakeholders urge Transport Canada to prioritize outstanding reimbursements to facilitate widespread EV adoption. The industry calls for a collaborative effort to resolve pending claims, restore trust, and accelerate the shift towards electric vehicles.
