CAR DEALERS HOPING FOR GOOD BUDGET NEWS NEXT WEEK
Long-term commitment to the CEVforBC program among the issues revving engines in the province’s automotive sales industry
The 2019 provincial budget will be delivered in a matter of days and the New Car Dealers Association will be awaiting news on legislative, regulatory or tax measures that have the potential to have a direct effect on auto dealers, their 30,000 employees and customers.
When the NDP government delivers its budget Tuesday, the NCDA will be looking to see if there is a long-term commitment to CEVforBC.
In the last year, Victoria provided a $30-million infusion to the program in recognition of its success in making electric vehicles more affordable for individuals and families around B.C. That money will run out in a couple of months. With a dedicated, long-term commitment from the government, we can ensure more sustainable and environmentally friendly vehicles are on our roads and in our driveways.
We were equally heartened when the provincial government made a commitment last year to support the ongoing development of infrastructure to support a comprehensive fast-charging network.
At the time, the minister of energy suggested the government was working toward a seamless network to serve urban and rural areas. Again, we hope to hear more on this front as the issue of range anxiety is a key consideration for consumers when they look to purchase or lease an electric vehicle.
New car dealers play an important role in transitioning consumers toward clean-energy vehicles and we believe that carrots — not sticks — are the route to success. Needless to say, the NCDA will be interested in further details of the government’s plan to establish a zero-emission vehicle (ZEV) sales mandate.
Government has suggested it will be introducing legislation to phase in targets for the sale of ZEVs and in doing so will set targets for new vehicle sales being 10 per cent ZEVs by 2025, 30 per cent by 2030 and 100 per cent by 2040.
In theory, electric vehicles would be a solution for every individual and family, but that simply isn’t the current reality in B.C. or, for that matter, in any other part of the country. At this time, not every individual or family can afford an electric vehicle; EVs are not a realistic option in some areas of the province because of weather and geography; in many regions of the province, there isn’t a comprehensive network of charging stations; and a ZEV sales mandate fails to guarantee British Columbians will purchase EVs at the rate government would like.
A focus solely on EVs fails to take into account the fact that newer model gasoline vehicles, in the near term, can also play an important role in emissions reductions as manufacturers unveil new internal combustion models that are more fuel efficient with each passing year.
We also hear from B.C. consumers who want to see some relief from the luxury tax as it applies to the purchase of pickup trucks and popular crossover utility vehicles. Unfortunately, the threshold for this tax remains at $55,000 and for many who work in B.C.’s resource sector, these vehicles are not luxury items, but rather an essential part of how they support their families. An exemption on all trucks from the luxury tax is a great way to make life more affordable for hard-working British Columbians across the province
B.C.’s new car dealers generate $16 billion in annual retail sales, provide $675 million in revenue to all three levels of government and support more than 30,000 family supporting jobs across the province.
In the end, we trust government will recognize the significance the industry plays in B.C. communities and take the issues that affect our members and their hard-working customers across the province into account when it unveils its budget next week.