B.C.’s zero-emission vehicle rebate program has hit a red light. What does it mean for buyers?

It’s not uncommon to hear the familiar whirring sound of an electric vehicle coming down the street. But soon the number of new electric vehicles (EVs) on B.C.’s roads may start to plateau, as the province is pausing its zero-emission vehicle (ZEV) rebate program as of May 15, citing economic instability as one of the main reasons for the stoppage.

The pause comes at the same time as new (and ever-changing) tariffs and retaliatory tariffs are being slapped on specific cars and car parts coming to and from Canada. This confusing trade war is ultimately resulting in potentially drastic price increases on both new and used cars for many British Columbians.

“There is a lot to consider when weighing the cost and benefit of an electric vehicle, but typically, price is at the top of the list,” said Blair Qualey, President and CEO of the New Car Dealers Association of BC (NCDA), in a news release. “Over the course of the [rebate] program, when there were lapses in funding, we saw a dramatic decline in ZEV sales, and we truly hope that the government will see the logic in retaining the program.”

The provincial ZEV rebate program first started in 2011, offering up to $4,000 in rebates with the intention of encouraging more BCers to drive electric. The program was successful, with over 100,000 applications coming in between April 2015 and December 2024. The program also aimed to make charging stations more readily available, as well as educate consumers about the latest technology to make more informed car purchases.

But, with the ZEV rebate program seemingly at a red light for now, the NCDA is calling for the B.C. government to also put the brakes on ZEV mandates. Currently, the mandate requires 26 percent of all new cars sold by 2026 to be electric, and a whopping 90 percent by 2030. If automakers miss these targets, they will be met with hefty fines—about $20,000 per vehicle. This penalty could push car companies to send fewer gas vehicles to B.C., driving up prices for all vehicles, as was the case during the pandemic.

The NCDA cites a recent forecast from DesRosiers Automotive consultants, which notes that hitting the 90 percent target by 2030 is unlikely to be achieved. Even in the best-case-scenario, where there aren’t any major disruptions from tariffs, they estimate that only 57 percent of new cars sold in 2030 would be electric.

“By keeping its foot on the mandate accelerator, the government will be inviting unintended consequences that will negatively impact the economy, our sector, and most notably, consumers,” Qualey said in the release.

Those who wish to take advantage of the ZEV rebate program must apply and be pre-approved by 6pm on May 15, and purchase or lease an eligible vehicle before 11.59pm that same day. That’s a tall order for a major purchase, especially since government processing times are not always quick.

“We understand and appreciate the financial challenges facing the province,” Qualey said in the release. “But it’s unfortunate they have removed an ongoing commitment to clean energy vehicle adoption because it can’t all be on the backs of vehicle manufacturers which have invested billions into the technology.”