As automakers increase production at their electric vehicle plants, consumers might expect to see prices come down.
The new system’s eligible rebates for new ZEVs in the regular car category are now only available for vehicles that have a retail price up to $50,000. That is down from the previous qualification level of $55,000, and therefore provides fewer rebates. The legislation puts into law Victoria’s aspiration to have 10 per cent of vehicle sales be EVs, or plug-in hybrids, by 2025, and 26 per cent by 2026.Any automaker that does not meet those percentages for their own sales in the province by those designated years is set to face fines equal to more than $20,000 on each vehicle sold above that threshold, Qualey explained to BIV.
If demand for EVs therefore lulls and does not surge to the same degree as the provincial targets, there would be a situation where automakers are forced to simply sell fewer total vehicles in B.C. so they do not get fined. Canadian Finance Minister Chrystia Freeland in June told a media scrum that her government is considering whether to levy the duties because of what she called China’s “state-directed policy of overcapacity.”
If Canada failed to match the tariff rates that the U.S. slapped on Chinese EVs, EV batteries and components, there would be a risk that Canada would be seen to be a back door, through which Chinese EVs and components could pass on their way to the U.S.The tariffs on various battery parts, meanwhile, increase costs for any automaker that buys those components.
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