Retrait des subventions pour véhicule électrique : de fortes répercussions sur les ventes

In 2025, new vehicle sales increased by a meagre 2% nationwide. In the current economic context, that’s excellent news. However, sales in Québec declined by 3.2% over the same period. Along with British Columbia (where sales fell by 0.6%), Québec was the only Canadian province to see a drop in sales. Why? Due to a sharp reduction in electric vehicle subsidies for eligible models, despite stronger demand for this segment here than elsewhere in the country.

Abrupt subsidy cuts: a shock to the electric vehicle industry

In January 2025, Québec reduced the subsidy under the Roulez vert Program from $7,000 to $4,000, before temporarily suspending it between February 1 and March 31. Then, somewhat unexpectedly, the federal government withdrew the maximum $5,000 subsidy on January 13, 2025, disrupting the plans of Canada’s automotive industry. As a result, dozens of Québec dealerships found themselves with vehicles that had suddenly become much more expensive for consumers, forcing the industry to adjust. Within a matter of weeks, the tide turned, with supply far outpacing demand.

Bear in mind that, in 2024, consumers were practically lining up at dealership doors to take advantage of the subsidies. Consumers even considered themselves lucky to get their hands on an electric vehicle, such as the Chevrolet Equinox EV, the Hyundai Ioniq 5 or the Tesla Model Y. They were being sold at high prices, with no room for negotiation and at relatively unfavourable financing rates. In the final months of 2024, Chevrolet was selling more than 100 Equinox EVs per day in Québec. Can you imagine? And today, it’s being offered at rock-bottom prices, with a combination of manufacturer credits, loyalty discounts and even a Costco incentive. All of it at a heavily subsidized financing rate.

It is also worth noting that, in the fall of 2024, the Minister of the Environment at the time launched a media campaign across various publications aimed at encouraging Quebecers to switch to electric vehicles. A strategy that I consider questionable, and one that seemed primarily aimed at preserving the government’s status as a leader in the electrification of its vehicle fleet. The results were nevertheless impressive: in 2024, 34% of vehicles sold in the province were electric or plug-in hybrid.

Unsurprisingly, 2025 was far less encouraging, with electric vehicle sales in Québec down by about 59%. This also explains the decline in overall sales here, while the situation was different in the rest of the country. Respectively, the Chevrolet Equinox EV and Blazer EV posted drops in sales of 52.9% and 71.1%. For the Hyundai Ioniq 5, sales were down by 72.6%. Tesla, meanwhile, saw its figures plunge by 81.7%—a drop that, in my view, is also explained by Elon Musk’s antics, which ultimately discouraged some potential buyers.

What consumers have really taken away from electric vehicles

In 2025, about 14% of Quebecers purchased an electric or plug-in hybrid vehicle. Is it because people no longer believe in this technology? Of course not. Many remain convinced or realize that electric vehicles perfectly meet their needs. In that sense, it can be said that electric vehicle subsidies have helped democratize EV adoption, introducing them to a broader audience that now considers them in greater numbers.

That said, others have instead realized that driving electric can be restrictive, notably because the number of vehicles has grown much faster than the charging infrastructure across Québec. We have also begun to see the perhaps less “green” side of this technology: more complex and costly to repair, making electric vehicles more easily “disposable” than the average gasoline-powered model.

The decline in electric vehicle sales also coincides with the near disappearance of more affordable models. This should come as no surprise, as manufacturers adjusted to government rules by increasing the number of models eligible at the subsidy threshold. In other words, several models were launched at prices just under $65,000, while more practical electric versions were phased out. As a result, the Chevrolet Bolt, Hyundai Ioniq, Kia Soul EV and Nissan Leaf were withdrawn from the market to make way for more expensive models. Fortunately, however, these smaller vehicles are making a comeback this year. The Chevrolet Bolt, the Kia EV3 and EV4, the Nissan Leaf, and the new Subaru Uncharted and Toyota C-HR duo are just a few examples of more practical electric vehicles that will meet customers’ needs and preferences—without having to rely on any subsidies.

A likely return to growth in 2026, but with unrealistic targets

While electric vehicle sales have declined, all indications suggest that this downward trend will stabilize in 2026. In Québec, the benefits remain clear for many buyers, due to fuel costs and federal electric vehicle subsidies, which have been back in place since February 16. However, one challenge remains: for manufacturers to meet the electric vehicle sales targets set by the Québec government, which have risen to 32.5% in 2026. This target will need to be revised downward, as it is no longer viable in the current context. And with sales down across the rest of North America, Québec is now in a poor position to maintain its standing.

In the meantime, it is clear that EV buyers still hold significant negotiating power. Lots are full, offers are attractive and dealers are making sustained efforts to clear inventory while aiming to better manage incoming orders in the near future. Because while electric vehicles generally cost more for consumers, the same is true for dealers, who must also support them financially.

This article was written by an external contributor. The views expressed are those of the author and do not necessarily reflect those of Promutuel Insurance.