Automakers Replacing Federal EV Incentive With Their Own $5,000 Credit
Representatives from the Canadian auto industry gathered in Ottawa on Tuesday morning to formally call for the end of the zero-emission vehicle (ZEV) sales mandates brought in by the federal government in 2023 in the wake of Monday’s abrupt suspension of Transport Canada’s incentives program.
Some automakers quickly reacted to the news, too, announcing their own $5,000 rebate to offset the loss of the federal incentive.
- Also: Forget March 31, Federal ZEV Incentive Now Officially Halted
- Also: Quebec’s EV Rebate Program to Be Halted For Months, May Not Return
Hyundai is one example. The company will take $5,000 off the price of eligible IONIQ 5, IONIQ 6 and Kona Electric units that were recently sold to customers but denied the $5,000 from Ottawa due to their requests being processed too late.
The plan was confirmed to The Car Guide by a Hyundai Canada spokesperson, Frédéric Mercier, but the exact number of transactions that could be involved remains unclear. More details are expected to be shared shortly.
Over at Volkswagen, head of public relations Thomas Tetzlaff told us that customers taking delivery of a 2024 ID.4 from January 13-31, 2025 will get an additional $5,000 rebate to replace the federal incentive.
Additional? That’s right. The company was already offering a $5,000 discount on its electric crossover before Monday’s announcement by Transport Canada. In Quebec, customers get an extra $4,000 off until the end of the month, after which the provincial rebate will be halted, too.
Tetzlaff noted that ID.4 buyers can still take advantage of preferred finance rates including 0 percent up to 60 months, 1.99 percent for 72 months and 2.99 percent for 84 months.
The 2025 ID.4 models are not on sale yet, incidentally. As for the all-new 2025 ID. Buzz, which launched in Canada late in 2024, no similar deal is available since the electric minivan was too expensive to qualify for the federal incentive in the first place.
Customers who’ve recently ordered an electric vehicle from another brand or were planning to do so shortly should keep an eye on possible discounts or other special offers from automakers or dealers looking to move units from their lots.