Decrease in Electric Vehicle Sales by Tesla in Canada Reaches Up to 70% Due to Increased Prices and Elimination of Incentives
January 2025 saw a significant drop in electric vehicle (EV) sales across Canada, with Tesla experiencing a 70% decrease in sales compared to December 2024. According to S&P Global's preliminary data, overall EV and plug-in hybrid (PHEV) sales dropped by 79% during the same period.
The drop in Tesla sales is not attributed to anti-Elon Musk sentiment but rather the loss of rebates at federal and provincial levels and recent price hikes. The price increases led to the end of some provincial rebates, causing effective price increases of up to $21,000 for Tesla models in Quebec and $18,000 in British Columbia.
Other automakers also experienced large double-digit declines in sales. Hyundai saw a 30% month-over-month drop, while Chevrolet EV sales dropped by 65%. The drop in month-over-month EV sales growth in January 2025 compared to December 2024 is being countered by a year-over-year growth of 30% in Canada.
James Hearn, Associate Director of Marketing Reporting, commented on the drop in EV sales. He did not specify whether the trend will continue into February, but uncertainty around the iZEV program may contribute to a downward month-over-month trend.
In an effort to counteract the effects of the iZEV cut, Polestar, GM, and Nissan have already responded by offering $5,000 in incentives. The NDP has proposed tariffs on Tesla and a $10,000 made-in-Canada EV rebate.
The Liberal leadership race is nearing an end, and there is hope for further clarity on a revamped or funded iZEV program. However, the politician who will finish the leadership contest and make an announcement about a revised or promoted iZEV program to provide more clarity was not explicitly named in the available search results.
As the EV market evolves, consumers in Canada remain price-sensitive, and the ongoing rebate uncertainties and price hikes may continue to impact sales in the coming months.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
- Abdominal Fat Accumulation: Causes and Strategies for Reduction
