A Step Backwards for Quebec's Automotive Electric Transition

March 13, 2024 5:25 PM EDT | Source: Canadian Auto Dealers Association

Ottawa, Ontario--(Newsfile Corp. - March 13, 2024) - The Canadian Automobile Dealers Association (CADA) would like to express its deep concern over the Quebec government's recent Budget 2024 announcement regarding the gradual elimination of incentives for the purchase of electric vehicles.

This decision comes at a time when Quebecers are facing a major affordability crisis, making purchase rebates absolutely necessary for the eventual attainment of the ZEV standard imposed by this same government.

Removing these incentives could significantly slow down the progress Quebecers have made so far in adopting electric vehicles. The data also demonstrates that the fundamental reason behind Quebec's success in this transition to electric is the usage of this aggressive and comprehensive incentive program. The two best-performing provinces - Quebec and British Columbia - are also the only ones to offer greater financial incentives than those proposed by the federal government.

The government rationale behind this decision also appears to be flawed. While Minister Girard has indicated that the price differential between electric and ICE vehicles is now marginal, impact assessments conducted and adopted by the federal and Californian governments have shown that price parity will not be achieved at least until 2033.

This budget proposes to turn back the clock by putting forward an approach similar to that of provinces that have barely begun the transition to electric vehicles. Essentially, this decision seems to mean that the Quebec government, with its restrictive, mandatory ZEV standard, inevitably expects a transition, and that helping consumers to take part in it is no longer a priority.

CADA calls on the Quebec government to reconsider its decision and recognize the importance of electric vehicle purchase incentives as an important tool in achieving the province's environmental goals, while addressing consumers' legitimate concerns about affordability and accessibility. It is imperative that we work together to build a more sustainable and affordable future for all Quebecers.

About CADA:

The Canadian Automobile Dealers Association is a federation of provincial and regional dealer associations, representing 3,200 franchised car and truck dealers who sell new cars and trucks in Canada. These retailers collectively employ over 140,000 people across the country, and represent a key sector of the Canadian economy.

Contact: Charles Bernard, Lead economist, cbernard@cada.ca

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/201638