Cancellation of rebates jolts electric vehicle market
Ford Government ends reimbursements funded through cap-and-trade program
NIAGARA AUTO DEALERS have mixed feelings about the cancellation of electric car rebates.
On July 3, the Rob Ford’s new government cancelled rebates for the Electric and Hydrogen Vehicle Incentive Program (EVIP) and the Electric Vehicle Charging Incentive Programs, said a report on the Ontario Ministry of Transportation’s webpage.
EVIP offered consumers rebates of up to $14,000 for either plug-in hybrids or battery electric vehicles.
The rebates were funded through cap-and-trade, which was also cancelled, according to the webpage.
Ryan Heikoop, the pre-owned sales manager for Performance Mercedes Benz, said he didn’t see an increase in sales while rebates were being offered.
“There’s some curiosity in it, but the traditional gas-versions are our biggest sellers anyways,” Heikoop said.
The Mercedes-Benz GLC was eligible for a $7,000 rebate, per the webpage.
Heikoop said he expects to see a big hit for Smart vehicles, a brand owned by Mercedes-Benz.
The Smart line transitioned into electric-only vehicles in
2018. The Smart fortwo—the only model sold in Ontario—were priced at $30,000 and eligible for rebates of $11,000, said Heikoop.
“It’s got its own, unique market but we were selling them,” Heikoop said. “Once they take away this rebate program, I can’t see us selling a single one them.”
An article from FleetCarma said that in 2017, electric vehicle sales increased in Ontario more than double, reaching a yearover-year growth of 120 per cent.
Mike Bewley, the general manager at Performance BMW, said he expects electric vehicle sales to decrease, but his bottom line to remain the same.
The cost of an electric BMW is a “$5,000 premium” of a comparable gas-fueled vehicle, said Bewley.
Electric BMW’s are eligible for rebates ranging from $7,000 to $12,000 depending on the model, according to the webpage.
Bewley said he thinks his clients will still buy BMW.
“I don’t think there’s going to be a difference in the number of total cars sold this year because of the rebate changing,” he said. “It’s just going to be different cars purchased.”
The webpage from the Ontario Ministry of Transportation said, “Ontario cancelled the cap and trade program as part of its commitment to bring gas prices down by 10 cents a litre and help reduce costs for Ontario families and businesses by $1.9 billion dollars per year.”
Jeff Hewitt, general manager at Brian Cullen Motors, said he expects the increase in sales for electric vehicles to come to an end.
“I expect [sales] to decrease for 2019 model-year,” Hewitt said. “I think that’s a given because the pricing will be such that they’re not competitively priced with gas powered vehicles at this point time.”
He said he thinks manufactures will stream electric vehicles to provinces where rebates are still offered, such as Quebec.
Hewitt wasn’t sure if sales would decrease over-all.
“I think it’ll alter [consumers] shopping behaviour in terms of what kind of vehicle,” he said.
Sharon Archibald, office manager for EVdirect, an Ontario electric vehicle charging station installations company, said she’s seen a 30 to 40 per cent increase in sales over 2017.
Before the cancellation, rebates for electric vehicle charging installations were eligible for $1,000 rebates, said EVdirect’s website.
Since it became known that the rebates would be cancelled, Archibald said she received many last-minute calls of people hoping to get installations before the rebate it ended.
While Archibald said she isn’t sure if business will slow once the rebates end, she thinks the incentives were good for the environment and the economy.
“It’s hard to say,” she said. “I don’t think they should have cancelled it.”
Both Bewley and Heikoop said they think the industry will stay strong for pre-owned electric vehicles sales.
Heikoop said prices for used electric vehicles will be “considerate” of the rebate that was offered.
“It’s an inexpensive, electric vehicle,” he said.
Those hoping to be eligible for either rebate have until September 10 to have their vehicle registered and plated and to submit their application for electric vehicle installation.
“I expect [sales] to decrease for 2019 model-year. I think that’s a given because the pricing will be such that they’re not competitively priced with gas powered vehicles at this point time.”
JEFF HEWITT
General Manager, Brian Cullen Motors