Canada EV Incentive Benefits Chinese Manufacturers: Head of Auto Association”
Canada $5,000 electric vehicle (EV) consumer incentive is driving an influx of Chinese-made Teslas into the country, benefiting a firm without a domestic manufacturing presence, claims Flavio Volpe, president of the Automotive Parts Manufacturers’ Association and a supporter of Canada’s automotive industry.
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Canada
Volpe criticizes the upcoming EV market scheme, asserting that it provides substantial credits to companies manufacturing cars in China and Vietnam, disadvantaging those investing domestically. The federal government’s plan aims to make all new vehicles sold in Canada zero-emission EVs by 2035, with gradual steps requiring one-fifth of vehicles to be fully electric or plug-in hybrids by 2026, increasing to three-fifths by 2030. As part of the plan, a $5,000 incentive for EVs is offered, but Volpe highlights the absence of safeguards for domestic producers compared to equivalent incentives in the United States.
Under Canada’s model, any EV costing less than $55,000 qualifies for the $5,000 incentive, including purchases of Chinese-made Tesla Model 3 and Model Y cars. Volpe emphasizes the need to discourage Chinese-made EV purchases and focus on supporting Canadian and North American auto manufacturers and parts makers. Import statistics reveal a significant surge in the value of EV imports from China.
Volpe criticizes the lack of safeguards in the current system, suggesting that unscrupulous manufacturers could exploit the new scheme by importing vehicles from other countries. He is also critical of the federal Liberals’ plan mandating Canadian vehicle manufacturers to ensure a specific percentage of electric or plug-in hybrid vehicle sales, calling these quotas “insane.”
The soon-to-be-implemented credit system, where automakers earn credits for each EV sold, is viewed as flawed by Volpe. He argues that it rewards companies like Tesla, which do not invest in the Canadian economy but manufacture vehicles in China, creating an imbalance that penalizes domestic manufacturers and benefits importers.
