Canada suspends iZEV electric vehicle purchase incentive programme

Canada's Incentives for Zero-Emission Vehicles (iZEV) electric vehicle subsidy programme has proved so popular that it has exhausted its funding earlier than originally planned. The funding was supposed to last until the end of March 2025.

Here's What We Know

The Canadian Department of Transportation has clarified that the programme was "officially suspended on January 12, 2025, as the allocated funds have been fully utilised". Customers who have already ordered an electric vehicle and whose application for the iZEV programme has been pre-approved will still receive the incentive. The rest will have to pay full price for their new car or delay their purchase

The pause does not affect medium- and heavy-duty zero-emission vehicles as they are incentivised under another programme called Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV), first introduced in 2022 and not scheduled to end until March 2026.

The iZEV subsidised the purchase and leasing of new electric vehicles and plug-in hybrids up to CAD 5,000 (approximately USD 3,480 or EUR 3,400). More than 546,000 electric vehicles have been partially financed under the programme since its launch in 2019.

According to Transport Canada, the subsidy scheme has helped Canada achieve a ZEV market share of 14.2 per cent for the first three quarters of 2024, compared to 11.7 per cent for all of 2023.

When and whether the iZEV programme will continue has not been specified.

Source: Electrive