For a nation that seems slow to take an interest in electric vehicles, we sure seem to be talking about them a lot lately.
The Feds have just announced a new subsidy for electric vehicles;
$5,000 for a new EV, and $2,500 for a new plug-in hybrid as of Feb. 16th. This is only for vehicles sold or leased for under $50,000, unless the vehicle is made in Canada. The subsidy will become less generous and reduce over time.
Nothing for used cars, and no the subsidy will not apply to those Chinese EVs we may be seeing soon, it’s only for imports from countries with whom we have pre-existing free trade deals e.g. the U.S. and Mexico for example. Speaking of Chinese EVs …
China is Coming!
Prime Minister Mark Carney went to China recently and, with tariffs and trade winds at his back, came back with a deal.
China gives us a break on some of our agricultural products, and we will allow some of China’s cheaper electric vehicles into our market. Here is a summary to try to help make sense of what this means for our market:
Canada will sharply reduce tariffs on electric vehicles imported from China. Tariffs are cut from 100% down to about 6.1% for Chinese-made EVs entering Canada.
Canada will implement an annual quota of 49,000 EVs per year initially. That quota is expected to increase gradually to roughly 70,000 vehicles by the fifth year of the agreement.
At least 50% of these vehicles must be “affordable” models priced below about C$35,000 by 2030.
Which Brands Are We Talking About?
- Any Chinese-built EV can technically be eligible
The tariff deal doesn’t explicitly name specific brands. It lowers tariffs on EVs “made in China” and allows up to about 49,000 Chinese-built EVs to be imported per year.
- In practice, only vehicles with Canadian/North American certification and approvals can sell right away
To actually be sold and registered in Canada, EV brands must meet Canadian safety, emissions, and other standards (crash testing, lighting, climate control, etc.). So:
Tesla (Shanghai-built Model 3/Model Y) is expected to be an early beneficiary because it already meets standards and has an established dealer/network footprint in Canada.
Geely controlled brands like Volvo and Polestar — some of whose China-built EVs already meet North American regulatory requirements — are also likely to be early importers.
BYD electric vehicles are cleared to enter the Canadian market, for models that comply with Canadian Motor Vehicle Safety Standards.
- Other Chinese brands
Many major Chinese EVs are eligible in principle under the tariff change and represent major players globally.
However, many of these have not yet completed Transport Canada certification or established Canadian sales/service networks, so they won’t appear in large numbers right away.
Finally, of note, this deal does not include used Chinese EVs.
If this lower priced product eventually makes it into the used market you may find more consumers interested in buying.
Dealers should be ready to learn more about EVs
UCDA and Centennial Partnership
Since 2024, the UCDA has partnered with Centennial College to deliver Electric and Hybrid (EV) vehicle training to your staff and is offering 50% off the cost of the basic programs!
Whether it is basic knowledge your team seeks, perhaps to familiarize your sales staff with the EV product at its most basic level, or a higher-level dive in for your existing 310S service technicians, at an intermediate level, Centennial and the UCDA are working together to deliver it to you.
Offered to class sizes no larger than 12, Centennial will come to you, take over a bay for a few hours, and teach the program offerings described below:
Basic
High Voltage Safety CESD 110 (6 hours)
A perfect primer for sales staff and techs who may know very little about this unique form of motor vehicle, this course requires no technical knowledge, takes 6 hours, and costs $2,300.
The UCDA will pay 50% of that cost!
Centennial College will issue you a Certificate at the end of this 6 hour course.
Hybrid and Electric Vehicle Introductory Overview CESD 109 (12 hours)
Your existing 310S service techs will benefit from this because it offers more detailed technical overview taking a total time of 12 hours at a cost of $4500.
The UCDA will also offer 50% cost sharing of this option as well!
Centennial College will issue a Certificate at the end of this 12 hour course.
CESD 110 plus Hybrid and Electric Vehicle Introductory Overview CESD 109 (18 hours)
Your existing 310S service techs will benefit from this because it adds on to the basic introduction with some more detailed technical overview taking a total time of 18 hours over 3 days at a cost of $6800.
The UCDA will also offer 50% cost sharing of this option as well!
Centennial College will issue a Certificate at the end of this 18 hour course.
The best part? Centennial will come to you, whether you are in Thunder Bay, Windsor, Ottawa or the GTA! Some distance courses will involve an additional hotel and travel charge.
Intermediate
As you can see below, for those dealerships that really want a full training approach, there are additional options you can consider for your Techs including CESD 112-114.
After taking these courses, Centennial will offer a College Certificate of Completion.
For dealers in the GTA, training on-site at Centennial may be preferred to save tying up a bay, and we would still offer 50% of the cost for the basic options should that be the case.
To register: https://www.ucda.org/centennial/
or call the UCDA 416-231-2600 or 1-800-268-2598
or email education@ucda.org