A Nanaimo car salesman is sounding the alarm about the potential consequences of eliminating electric vehicle (EV) rebate programs in British Columbia. Adam Iverson, sales manager at Steve Marshall Ford in Nanaimo, is concerned that the loss of government incentives will hurt families who were beginning to embrace EVs for both environmental benefits and cost savings.
“People were very considerate of that. Not only for the environment standpoint, but saving money to the bottom-line of their budget,” Iverson explained. The recent removal of provincial sales tax (PST) exemption on pre-owned EVs in Canada, combined with the impending elimination of B.C.’s EV rebate programs, is expected to significantly impact consumer behavior.
Impact on EV Sales
The combined federal and provincial rebates, which totaled up to $9,000, had made B.C. a leader in EV sales in Canada. However, with both rebates being phased out, consumers will now face higher upfront costs. Blair Qualey, president of the New Car Dealers Association of B.C., noted that the $9,000 rebate “was a huge help to people that wanted to buy a new electric vehicle, and it really helped bridge that differential between the gas vehicles and the electric vehicles.”
Concerns About Demand
Qualey predicts that the removal of these incentives will erode demand for EVs, as consumers begin to question the total cost of ownership, range anxiety, and charging infrastructure. “All of those questions are what people are asking now,” he said. Iverson shares this concern, expecting a “sharp dip” in EV sales following the loss of government support.
Government Response
B.C. Premier David Eby explained that the rebate program is currently on hold as part of a broader review of climate action initiatives. “What we want to make sure is we are not sending money to Elon Musk through this program. That we are actually supporting British Columbians getting into zero emission vehicles in the province in a real and practical way,” Eby stated during a press conference.
Future Mandates and Challenges
While B.C.’s mandate requiring car dealers to make EVs 90% of their sales by 2030 remains unchanged, dealers are lobbying to have these targets reduced before they take effect in 2026. Iverson noted that the increasing costs associated with EVs, coupled with looming U.S. tariffs and stringent zero-emission vehicle targets, may lead consumers to opt for cheaper gas-powered vehicles instead.
“The world’s just continued to get more and more expensive and this has just added a cost. So, with a gas engine being a little less money, people may choose to buy with their wallet,” Iverson said. As the automotive landscape continues to evolve, stakeholders are closely watching how these changes will impact the adoption of electric vehicles in B.C.
