By Blair Qualey
For the past fourteen years, British Columbia has ascended to a leadership position in zero emission vehicle (ZEV) adoption. Our success has been based on three key elements: point of purchase rebates to ensure electric vehicles are more affordable; convenient and reliable access to fast charging infrastructure; and educating consumers about the latest features and technology.
Today, there are more than 150,000 electric vehicles traveling BC highways and in 2023, this segment represented almost 23% of all light duty passenger vehicle sales in British Columbia. However, in 2024 we began to see a softening in the electric vehicle market, as we moved from early adopters who made their market choice, to the broader consumer who will need to satisfy a host of concerns – including price.
It’s because of these changing circumstances that decisions by our two senior levels of government are disappointing and equally puzzling.
Last week, Transport Canada announced it is ‘pausing’ the Zero Emission Vehicles (iZEV) Program while also acknowledging it’s been a huge success, helping Canada reach a new market share of 11.7% in 2023. The decision comes on the heels of a 2024 decision by the provincial government to reduce the threshold for qualifying vehicles for the CleanBC Go Electric Vehicle Program, effectively removing 75% of all eligible vehicles.
We believe that government policy decisions should reflect reality. Instead, both the provincial and federal governments have made decisions that have the potential to undo much of the progress we have achieved.
The actions of government also run counter to ZEV mandate policies that have been established at the federal and provincial level – requiring automakers to meet an escalating annual percentage of new light-duty ZEV sales and leases, reaching 26% of light-duty vehicle sales by 2026, 90% by 2030 and 100% by 2035.
Under the BC policy, automakers face significant financial penalties if they fail to meet mandated targets. The prospect of major penalties already has some manufacturers reducing allocation of vehicles in order to meet quotas – and it will be consumers who pay in the end because limiting inventory means a higher price point for all new and used vehicles, as we experienced during the pandemic.
New Car Dealers remain adamant that the federal and provincial ZEV mandates should be removed immediately in favour of a more flexible approach.
New Car Dealers have done their part in building the infrastructure and resources required to support the ZEV transition governments have actively promoted. In the case of the federal government, they refuse to take ownership of their decision and have instead advised that it is the responsibility of dealerships to notify customers who have ordered eligible vehicles that they will not receive the federal incentive.
At a time when affordability is top of mind among British Columbians and Canadians, our collective focus should be on strengthening incentive programs available to consumers. Similarly, if our governments are truly committed to meeting climate change objectives, they need to show leadership by helping dealers and manufacturers build momentum and assist consumers to make the transition to clean energy vehicles.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].
