Electric vehicles | When subsidies hang by a thread
“I have been saying for five years that the program cannot be eternal,” recalled Benoit Charette, Quebec Minister of the Environment, regarding the Roulez vert program. He kept his promise. From 2027, government assistance granted to buyers of electrified vehicles will end. The program was established in 2012 and has, during this period, undergone several revisions.
Today, this program grants, among other things, a subsidy of $7,000 to Quebec consumers for the purchase of a new 100% electric vehicle. The Quebec government's budget notably provides for a gradual reduction of this subsidy. From 2025, the aid will increase to $4,000, then to $2,000 in 2026. The 1er January 2027, it's over.
The announcement was rather coldly received by the industry (manufacturers and dealers) and activists from the start. They believe that this decision comes much too early and risks derailing the Quebec government's objective of banning the sale of new vehicles equipped with a thermal engine from 2035. They are not wrong if we judge by the decline in sales observed in recent months in Germany following the cessation or reduction of certain government aid.
Sales of electric vehicles are proving much less dynamic than before. And several manufacturers estimate that the fall will be even steeper this year.
The Association of German Manufacturers (VDIK) anticipates an increase of only 14% in sales in 2024. However, Germany is still counting on 15 million electric vehicles on its roads by 2030. Today, there are a little over 1 million.
This decline in electric power is not only felt in Germany, but also elsewhere in the world. Already, many manufacturers have already announced the postponement of certain electric vehicles due to less than expected growth in sales. This decline is explained, on the consumer side, by the absence of financially accessible models, the insufficient number of charging infrastructures, inflation and high interest rates.
In addition, on this side of the Atlantic, many are worried as the next American and Canadian elections approach. The results of these elections could further slow down this energy transition and further isolate the most progressive states and provinces, including Quebec.
