Subsidies from Roulez vert | The countdown is on

Owner of a Mazda CX-5 that has been paid for for three years and which is getting “a little old”, Patrick Chevalier was thinking of going electric. The turn of the screw that awaits subsidies from the Roulez vert program from next year risks precipitating its decision.

“When we saw the news [mardi], we started to say to ourselves that we were perhaps going to speed things up because we are talking about several thousand dollars, he said Wednesday in a telephone interview. It would be [illogique] not to take advantage of it. »

Finance Minister Eric Girard’s sixth budget surprised many by signaling that the days of subsidies offered to buyers of electric cars were numbered – a decision described as “regrettable” and “incomprehensible” by the car sector. automobile sales.

This year, buyers of fully electric cars will still be entitled to a maximum subsidy of $7,000, or $5,000 for a hybrid vehicle. From next year, the aid will gradually deflate before disappearing for good in 2027 – with the exception of subsidies for charging stations. The federal government will continue to offer grants of up to $5,000 until March 31, 2025 or until funds are exhausted.

“It will create a certain excitement”

According to the Corporation of Automobile Dealers of Quebec, many consumers are likely to adopt Mr. Chevalier’s strategy.

“The government decision will create a certain amount of excitement,” says its president and CEO, Ian Sam Yue Chi. We risk having households who question themselves, but who will rush their decision. »

You still have to have the means. This is the case of Mr. Chevalier’s family, made up of two adults and two children. Since the family vehicle is paid for, there is a “cushion” to accelerate the purchase of an electric model.

Still, he would have preferred to have more time on his hands.

“We were waiting because there was [Mazda] CX-90 hybrid last year, explains Mr. Chevalier. We said to ourselves that we could perhaps wait until the first electric version had proven itself before buying it. »

According to the AutoHebdo index – which takes into account combustion, hybrid and electric models – the average price of a new vehicle was $67,259 at the end of 2023.

Expensive

Popular, Roulez vert was costing taxpayers more and more. In 2022-2023, 238 million had been distributed to buyers. Last year, the bill for the program reached around 400 million. The Legault government justified its decision by asserting that the electric vehicle market could now stand on its own two feet. In the third quarter of 2023, more than one in five new vehicles in Quebec were powered by electricity.

At the Park Avenue Group, which brings together 17 automobile dealerships representing around twenty brands, the president and CEO, Norman John Hébert, is not convinced that the countdown will stimulate sales.

“I prefer not to speculate, but I can tell you that I can already see that the consumer is not there,” said the businessman. Today, 20% of our stocks are electric. Last year, this niche represented 12% of our sales. The way to convince consumers to opt for electric models is to make the purchase more affordable. We cannot always put the burden on the manufacturers. »

Mr. Hébert is not on the same wavelength as the Minister of the Environment and the Fight against Climate Change, Benoit Charette. On Wednesday, the latter affirmed that the prices of electric vehicles risked falling following the end of subsidies. In a press scrum before the council of ministers, Mr. Charette stressed that certain manufacturers had made “fairly significant” price reductions in recent months.

“It’s completely disconnected from the reality of car manufacturers,” retorts Mr. Hébert. What is likely to happen is that they will not be able to meet the targets set by governments for zero-emission vehicles and will have to pay fines. »

A sign that there is no consensus on this issue, George Iny, president of the Association for the Protection of Motorists, is more of the minister’s opinion. He looks favorably on the end of Ride green, which he describes as a “gift for dealers”. Above all, he laments, this “facilitates the sale of more expensive vehicles”.

“Does it make sense to encourage greater consumption of larger products? », asks Mr. Iny.

According to the automotive sector expert, it is “obvious” that in the absence of the $7,000 subsidy, many consumers would lose interest in an expensive and fairly large model like the Hyundai Ioniq 5 and turn to the Hyundai Kona, “which is still excellent, but which arouses less interest because of the subsidy”.

With the collaboration of Gabriel Béland and Marie-Eve Fournier, The Press