Canada reinstates federal EV rebate, spurring sales growth

The Canadian government has restored its federal electric‑vehicle purchase incentive, offering a $5,000 rebate for new EVs and $2,500 for plug‑in hybrids. The incentives apply to vehicles priced under $50,000 and imported from countries with a free‑trade agreement with Canada, excluding Chinese EVs. Funding of $2.3 billion over five years targets 840,000 new EVs on the road. In March, EV sales rose sharply, with overall vehicle sales up 42 % month‑over‑month and EVs capturing just over 12 % of new‑car sales. Industry observers cite pent‑up demand and the approaching price parity between EVs and conventional cars as drivers of the surge. The program will phase out after 2030 or when funds are exhausted, and Canadian‑made models such as the Dodge Charger and Chrysler Pacifica remain exempt from the price cap.