Hyundai has pulled ahead of Tesla in the number of vehicles supported by the federal Incentives for Zero-Emission Vehicles (iZEV) program, following a strong June for deliveries of the Kona Electric and Ioniq 5 battery-electric vehicles (BEVs).
Hyundai has received more federal ZEV incentives than any automaker in 2022
June for deliveries of the Kona Electric and Ioniq 5 BEVs pushed Hyundai into the lead
iZEV Program at a Glance
The iZEV program provides a $5,000 rebate for BEVs, as well as PHEVs with electric range greater than 49 kilometres. PHEVs with less electric range qualify for $2,500.
The same eligibility criteria applies to both categories. Zero-emission passenger cars starting at less than $55,000, and higher-cost variants up to $65,000 qualify for the incentives. Larger vehicles such as pickups, minivans and SUVs must have a base price of less than $60,000, and higher-cost variants must start at less than $70,000. Higher-cost trim levels are not eligible.
At the halfway point of the year, iZEV rebates were applied to 7,299 Hyundai vehicles and 7,054 Teslas, according to data supplied by Transport Canada, bumping Tesla out of the first position for the first time since January. The Hyundai numbers include plug-in hybrid vehicles (PHEVs).
Totals are based on the date the iZEV claim is submitted to Transport Canada, which occurs after the vehicle has been delivered to the consumer and the incentive has been applied at the point-of-sale.
In June, Hyundai delivered 613 eligible Konas and 510 Ioniq 5s, plus 157 Tucson and 80 Sante Fe PHEVs. Tesla delivered 205 eligible Model 3s, a sharp decline from the 1,139 it shipped in May. A Model 3 price hike in November put the vehicle above the eligibility thresholds.
The Chevrolet Bolt EUV followed the Ioniq 5 and Kona Electric in June, with 354 deliveries, accounting for more than half the subcompact crossover’s count year-to-date.
Two relative newcomers to the iZEV program were among the top BEVs for June. The Ford Mustang Mach-E and Polestar 2 became eligible in April when Ottawa increased price thresholds for qualification. Rebates were applied to 153 Mach-Es and 93 Polestar 2s.
The Jeep Wrangler 4xe, another newly eligible vehicle, grabbed the top spot among PHEVs in June as 442 were provided rebates. That’s a repeat of May.
For 2022, however, the Ford Escape PHEV remains the most incentivized, with the iZEV program providing rebates for 1,643 vehicles. The Toyota Prius Prime and Chrysler Pacifica ranked second and third, each with more than 1,300 vehicles receiving iZEV support.
Provincially, Quebec continued its dominance of the iZEV program in June, with its 2,801 zero-emission vehicle (ZEV) deliveries accounting for 59 per cent of the Canadian total of 4,712. Year-to-date, Quebec residents have purchased 14,548 vehicles, or 52 per cent of the vehicles that received support from program. Contributing to the large numbers is Quebec’s significant population and a provincial incentive up to $7,000 for ZEV buyers, which is the highest provincial incentive in Canada. Quebec also has a mandate requiring automakers to sell ZEVs or exchange offset credits.
Total iZEV vehicle deliveries of 27,830 slid by more than 700 in June, driven mainly by British Columbia, which was down by more than 600 vehicles. B.C. also has ZEV sales targets and a $3,000 provincial rebate.
Quebec, B.C. and Ontario accounted for nearly 95 per cent of all iZEV supported deliveries in June, consistent with the regional performance throughout 2022.