Federal EV rebate: Quebecers could save up to $7,000 

Quebecers could see savings of up to $7,000 on electric vehicles (EVs) with the federal government’s newest rebate program.

On Thursday, the federal government announced its new automotive strategy, including the EV Affordability Program which offers a rebate of $5,000 on EVs that cost less than $50,000. When stacked with the province’s own rebate of $2,000, consumers could see save up to $7,000 on fully electric vehicles.

Plug-in hybrid vehicles will also receive a rebate of $2,500 under the program. With Quebec’s own incentives, savings for those models rise to up to $3,500.

The program is the government’s latest bid to make it less expensive for consumers to go green – as the government promises that 75 per cent of all vehicle sales in the country will be fully electric by 2035. 

“For many people, jumping into an electric vehicle is a way to save money at the pump,” says Eric Buzaglo, cofounder of Autos Consultants.

“We’ve seen it in the last couple of years that consumers have jumped on the bandwagon of electric cars because incentives were in place,” said Buzaglo.

Auto specialists say that these government discounts may prove to be enticing for Quebecers – as they have been in the past.

“In Q4 of 2024, we were at 42 per cent in the sales in Quebec. So, I mean, this was much higher than California even,” Daniel Breton, president and CEO of Electric Mobility Canada.

The program is to take effect from Feb. 19 and will apply to vehicles from countries with which Canada has a free-trade agreement.

Experts say that it’s no accident the move comes on the same year Canada is set to renegotiate the CUSMA, the country’s free-trade agreement with the U.S. and Mexico.

“Prime Minister Carney was very clear on saying that we have to rely less and less on the U.S.  because we don’t see (them) as a reliable partner anymore,” Breton said. “With tariffs and play, there are 125,000 (jobs) that are at stake here in Canada.”

Unlike imported models, electric vehicles built in Canada won’t face a price cap under the rebate program.

But experts warn that consumers should think twice before financing a new vehicle. 

They say that manufacturers can absorb the rebate by reducing factory incentives and that buyers may not feel the same level of savings that they expect month-to-month.

“This is an opportunity for automakers to lessen their rebates on their end,” Breton said.

The new federal rebate also comes with a $1.5 billion investment in Canada’s electric charging network. 

But Montrealers CityNews spoke to were split on whether a new EV will actually save money at the pump.

“One day the price of electricity would rise like gas,” said one Montrealer.

While another said EVs were a better choice than traditional gas-powered vehicles.

“I’m considering switching electric because it’s more advantageous, profitable and therefore economical. With gas, we can’t control when prices rise and fall.”