By Blair Qualey
The old adage that a New Year brings renewed hope and optimism is one that our sector will gladly embrace. As we enter the initial weeks of 2025, there is only one for certain; we are in for a wild ride. A federal election looms and our sector will have a great deal of interest in each of the respective party platforms and positioning on issues that may impact our industry and the broader economy. South of the border, again – we will be watching how the Trump administration moves forward.
In British Columbia, where the NDP government was recently re-elected with a razor thin majority, we have compiled our 2025 resolutions, or what some may view as wish-list of desired outcomes in the months ahead.
Continue to work in the spirit of partnership to counter a softening in the zero-emission vehicle (ZEV) market.
The long-standing partnership between New Car Dealers in delivering the CleanBC Go Electric Vehicle Rebate Program has increasingly delivered positive results – but 2024 was a wake-up call with a softening in the ZEV market.
There are two specific areas that we hope to influence change and course correct. These include restoring sustainable electric vehicle rebates to pre-pandemic levels, to ensure ZEVs are as affordable as possible. The second being, a re-thinking of the rigid and punitive policies associated with the Zero-Emission Vehicle Act. As it stands, automakers face financial penalties of $20,000 per vehicle, if they fail to meet mandated targets requiring 26% of light-duty vehicles sold in BC be ZEVs by 2026, 90% by 2030 – and 100% by 2035. The prospect of major penalties already has some manufacturers planning to reduce allocation of all vehicles (including gas powered) in order to meet arbitrary mandate quotas – and it will be consumers who pay in the end. Limiting inventory means a higher price point for all new and used vehicles, as we experienced during the pandemic.
In the same vein, we hope to encourage an increase in annual funding for electric vehicle fast-charging infrastructure. Simply put, sustained and increased funding for reliable province-wide electric vehicle infrastructure is vital to long-term ZEV adoption.
Across the country, the issue of affordability is a key area of concern – and BC is no different. The present poorly named BC Luxury Tax kicks in at a $55,000 purchase price and captures many vehicles that are not luxury items – but rather, those that families and individuals rely on as a work or lifestyle choice. It also fails to reflect the reality that the average cost of a new vehicle is now $66,000.
As the retirement wave sweeps through this country, increased investments in Post-Secondary Education for the Automotive Sector are critical to the continued growth and success of the automotive sector, and government’s desire to increase zero emission vehicle adoption. By increasing funding in post-secondary programs focused on automotive technologies and services, we can ensure a well-trained workforce capable of meeting the demands of this evolving industry and contributing to the broader provincial economy.
As 2025 unfolds, there is little doubt that opportunities and challenges will arise – but our sector is one that is both resilient and dedicated – and we collectively will weather any storm.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].
