Girard budget: Big impact on electric vehicle sales

Car dealers in Quebec expect sales of electric cars to drop as the Legault government pushes the button to end subsidies for these vehicles starting in 2025.

• Also Read: Subsidized electric cars in Quebec are sold in Ontario

• Also Read: Girard budget: Facing a record deficit of $11 billion, Quebec faces tough choices

“We are very disappointed. It's too early to write off $7,000 for an electric car. Especially with inflation, this risks affecting many Quebec buyers who will opt for gasoline cars instead,” laments Ian P. Sam Yue Chi, president of the Quebec Automobile Dealers Corporation (CCAQ).

Finance Minister Eric Girard announced on Tuesday that subsidies for the purchase of electric vehicles will be phased out. Note that this program called “Roulez vert” was established in 2012.

Buyers of 100% electric cars can still get a $7,000 rebate for vehicles costing $65,000 or less. The following year, the subsidy will increase to $4,000, and then to $2,000 in 2026. However, this financial assistance will be phased out completely in 2027.

“It is not impossible that people will buy a lot of electric vehicles in the coming weeks to take advantage of the subsidy. On the other hand, in the long run, the impact will be negative and sales will decrease,” explained Mr. Sam Yu Chi in an interview. The Newspaper.

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The 2023 Toyota RAV4 Prime XSE AWD was unveiled at the 2023 Fourth Quebec Electric Vehicle Show.

Nicolas St-Pierre / JdeQ

Manufacturers lose

Guillaume Andre, owner of Simon Andre Electric Vehicles, a family business in Trois-Rivières, says some models of electric cars will suffer more in the future.

Portrait of Guillaume Andre, owner of Simon Andre Electric Vehicles

Courtesy

“With this announcement, certain brands that take more than a year for vehicle delivery are sure to make an impact. People shouldn't wait until 2025 to get their car and make sure they have $7,000 in 2024,” Mr Andre said.

He cited as an example the electric models from the Hyundai and Kia brands, which Quebecers love the most.

“We don't want to have too much influence with other manufacturers like Tesla. They deliver their goods quickly and are ready,” states Guillaume Andre.

Abuses?

News magazine Quebec announced a $7,000 subsidy for electric cars last November. In total, 685 Quebecers received this discount multiple times when purchasing such vehicles.

Photo by Martin Alary

Aren't there many abuses by some users who want to make money with public funds from the Roulez vert program?

“We've heard of a few cases, but it's very anecdotal. We're not talking about a generalized problem,” assured CCAQ's Ian P. Sam Yue Chi.