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Sales of new EVs have surged 80 percent since the re-introduction of Canada's EV incentive program
Many dealerships in Canada are still waiting for the government to pay them back.subsidies and, since February, have already claimed more than $122 million. However, a new report reveals that many dealerships are still waiting on the government to reimburse them.and then seek reimbursement from the government.
As of May 29, 24,389 claims had been recorded in the database, totaling $122 million in subsidies from the $2.275 billion allocated by the government over the next five years. Incentives are available for vehicles that cost $50,000 or less. They can reach up to $5,000 for battery-electric and fuel-cell electric vehicles, and at $2,500 for plug-in hybrid vehicles.is great news for buyers. Canada operated a similar rebate program between 2019 and 2025, encouraging locals to buy more fuel-efficient vehicles.
When that program ended in January 2025, EV sales fell from an 18 percent share of total new car sales to just 10 percent. However, while vehicles sold from February 16 have been eligible for the subsidies, dealers weren’t able to file reimbursement claims until April 6.
TheAuto Dealers Association says many dealerships are still waiting to be paid, with some waiting for more than $200,000 in rebates.in a timely manner has not happened in the early days of the program,” CADA spokesperson Huw Williams said.
“There does not seem to be an appreciation that the timelines for repayment are hurting business cash flow. This is money we are advancing on behalf of the federal government. ” Some rebate claims have reportedly been rejected due to simple typos, and there’s no way to appeal or review those denials. According to Transport Canada, it’s working to quickly make the reimbursements.
“There is no hold on repayments; complete and validated claims continue to be processed and reimbursed,” it said. “While Transport Canada aims to process complete and accurate claims as quickly as possible, timelines may vary depending on validation requirements and submission volumes.
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