The upcoming elimination of the US$7,500 rebate for the purchase of electric vehicles by Donald Trump in the United States could cause their sales to drop drastically.according to the Corporation of Quebec Automobile Dealers (CCAQ).
“Incentives have proven their effectiveness. In markets where they have been abolished, a significant slowdown in growth or even a slowdown has been observed,” reacted to Journal P. Sam Yue Chi, CEO of the Corporation of Automobile Dealers of Quebec (CCAQ), Friday.
The day before, Reuters revealed that two sources told it that Biden’s federal rebate of US$7,500 for the purchase of electric vehicles was going to fall.
This had an electric shock on manufacturers who saw their shares collapse on the stock market, including Tesla which lost 5.77% and Rivian which fell by 14.30%.
Incentives work
However, according to Sam Yue Chi, CEO of the Corporation des concessionaires d’automobiles du Québec (CCAQ), the incentives work and the effects are likely to be striking.
“Manufacturers will always seek to place EV allowances in the markets where they sell best with incentives,” said the CCAQ.
“Quebec’s supply is one of the highest in North America. The question remains whether the market is capable of absorbing more,” he concluded.
In recent years, the impact of eliminating incentives has been proven elsewhere in the world. In Germany, sales declined after last year’s announcement. Then, in Ontario, there was a 55% drop in sales which accompanied the end of provincial incentives.
Remember that assistance for the purchase of EVs is set to disappear by 2027. On January 1, 2025, the Quebec subsidy will drop from $7,000 to $4,000.
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Table provided by the Government of Quebec
