Canada Planning New Program to Boost Electric Car Sales in 2018

With EV sales up 68 percent, the Canadian Government working on a new adoption strategy.

byRob Stumpf| PUBLISHED May 29, 2017 4:39 PM
Canada Planning New Program to Boost Electric Car Sales in 2018

If you buy a new electric vehicle (EVs) in Canada, your incentives are based on what your province offers. Recently, some new programs came to light that will help to move electric cars on a broader, national level.

Currently, it is believed that nearly a quarter of emissions in Canada are generated by the transportation sector alone. As part of a program to reduce greenhouse gas emissions by 2030, Canadian officials are working to launch a strategy by 2018 which would greatly accelerate adoption of zero-emission vehicles—specifically, electrified cars.

"We understand Canadians’ concerns about the environment and are developing an aggressive strategy to tackle climate change by taking actions to reduce greenhouse gases and air pollution. By putting more zero-emission vehicles on the road, we are investing in the future of cleaner transportation for all Canadians."

Marc Garneau, Canadian Minister of Transport

Canada plans to address current issues by offering incentives that address "vehicle supply, cost and benefits of ownership, infrastructure readiness, public awareness, and clean growth and clean jobs", per the official statement

Canada has not yet announced the details of how they plan to address these areas, however, there is the possibility of a national financial-based incentive such as a tax credit to encourage the purchasing EVs, as in other countries. In the United States, national tax credits of up to $7,500 can be applied when purchasing an electric car. This number is on top of credits at a state level, and operates as an independent program.

Previously, Canada has attempted to grow EV adoption by funding charging infrastructure. This helped aide in the placement of charging stations, which makes up some of Canada's 4,900 EV chargers deployed throughout the nation. In 2016, the government budgeted $62.5 million; in 2017, $120 million. The growth promoted by this governmental program may have helped aide the massive growth in EV adoption since 2016. Comparatively, this is something which vehicle manufacturers have heavily invested in across the United States. Increase in Canadian incentives may aide in funding manufacturers to do the same in Canada.

This incentive act will further aide in Quebec's recent mandate to electrify 3.5 percent of vehicles on the road there by 2018. Though no other provinces have a similar mandate, there is no noted plan to make a similar national requirement at this time. Currently, 10 U.S. States (including California, Maryland, New Jersey, and New York) have similar EV adoption protocols.