The Quebec government has announced a temporary suspension of subsidies for electric vehicle (EV) purchases under the Roulez vert program. The suspension will take effect from February 1 to April 1 next year due to insufficient funds in the program. Here’s everything you need to know about the impact of this decision.
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Temporary Halt on EV Subsidies
The Roulez vert program, which offers financial assistance ranging from $3,500 to $7,000 for buyers of electric or hybrid vehicles in Quebec, will pause its subsidies for two months. Financial assistance for purchasing residential electric charging stations will also be interrupted during this period.
According to Environment Minister Benoit Charette, the program’s high demand exceeded its allocated budget.
“It’s very, very costly. The demand is very high, so we exceeded our budget. So we simply suspend the program for only two months. It’s not the end of Roulez vert,” said Charette.
He assured the public that there is “no surplus” to draw on for extending the program during this period.
Planned Reductions Postponed
Initially, the Roulez vert program was slated to begin gradually reducing subsidy amounts starting January 1, 2025. This timeline has now been adjusted, with reductions expected to commence in April 2025. Despite the temporary suspension, the program is still set to run until 2027.
Industry Concerns Over Market Stability
The decision to suspend subsidies without transitional measures has drawn criticism from industry stakeholders. Ian P. Sam Yue Chi, CEO of the Quebec Automobile Dealers Corporation (CCAQ), expressed concern about the negative impact on market stability:
“The decision to suspend the Roulez vert program, without any transitional measures, jeopardizes market stability and creates unfortunate uncertainty for our entire industry.”
The CCAQ has urged the government to delay penalties scheduled for 2025 to “preserve the confidence” of car dealers and users. They also emphasized the need for a grace period to adapt to future regulatory changes.
Positive Steps Amidst Challenges
While critical of the suspension, the CCAQ acknowledged that Quebec’s decision to conduct studies on the evolution of the EV market in 2026 and 2030 is a positive step. These studies aim to assess market dynamics and guide future policy decisions.
Experts Warn of Potential Sales Slowdown
Daniel Breton, President and CEO of Electric Mobility Canada, criticized the government’s decision to halt subsidies, particularly when the Climate Change and Electrification Fund reportedly has significant surpluses.
“What’s even more surprising is the fact that the Climate Change and Electrification Fund has significant surpluses and that the government doesn’t want to invest it all in policy, solar, GHC emissions,” said Breton.
Breton predicts a slowdown in EV sales during the suspension period, as consumers may delay picking up their vehicles until subsidies resume in April.
“It’s going to be a pain in the neck for dealers, consumers, and manufacturers,” he added.
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Looking Ahead
The suspension of the Roulez vert program is a temporary measure, but it has already sparked debate about the long-term implications for Quebec’s EV market and environmental goals. As the government balances fiscal constraints with its climate commitments, all eyes will be on how it navigates these challenges in the coming months.
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