EV sales continue to plummet in Ontario after provincial rebates end

Sales of electric and hybrid vehicles continue to plummet in Ontario even has national volume increased, according to data compiled by a non-profit EV advocacy group.

First-quarter sales dropped 54 per cent in Ontario compared with the same quarter last year, according to Electric Mobility Canada’s latest report on green vehicle sales in Canada.

The organization, which is member-based and dedicated to the advancement of electric vehicles, used data collected by Statistics Canada and IHS Markit. It found automakers sold 1,219 electric vehicles in Ontario during the first three months of the year, down from 2,633 during the same period in 2018.

“This decline is largely due to the abolition of the Ontario government's purchase incentive program in July 2018 and proves the essential role that government must play to support the market as long as EV prices are not on par with those of gas-powered vehicles,” Electric Mobility Canada said in the report.

Ontario last year eliminated the Electric and Hydrogen Vehicle Incentive Program, which was worth up to $14,000 per vehicle. Incentives were honoured for vehicles ordered, delivered and registered by Sept. 10, 2018.

“Ending the Electric and Hydrogen Vehicle Incentive Program could save Ontario taxpayers up to an estimated $1 billion over four years,” the Ontario Ministry of Transportation said.

Meanwhile, national EV sales were up 21 per cent to 8,025 units during the same quarter.

Electric Mobility Canada said that because of Ontario’s decision to kill rebates, “growth in Canada was limited” in the first three months of 2019. EV sales were up 75 per cent during the first quarter of 2018 when compared to 2017. 

Quebec and British Columbia still offer provincial rebates. Sales in Quebec during the first quarter were up 56 per cent to 3,814 vehicles while sales in B.C. were up 100 per cent to 2,718.

Electric vehicles now hold a market share of 1.89 per cent, a slight increase from 1.5 per cent in the first quarter of 2018. 

“The share of EVs is even more pronounced when British Columbia and Quebec are isolated, where it stands at 5.55 per cent and 4.12per cent respectively during this period,” Electric Mobility Canada said.

A new federal electric-vehicle rebate program began May 1, giving buyers up to $5,000 toward a new EV.

“It will be interesting to see if the new federal incentive, effective May 1, 2019, will restore sales in Ontario in the next quarter,” Electric Mobility Canada said.

The top-selling electric models during the first quarter were the Tesla Model 3 (1,594), Hyundai Kona (1,163) and the Mitsubishi Outlander (710).