More than $122 million in electric vehicle rebate claims have been submitted since the launch of Canada's new incentive program, but dealerships across the country are still waiting to be paid, raising concerns about cash flow and program administration.
Record Claims but Payment Delays
The new EV rebate program, which began earlier this year, has seen a surge in applications as consumers rush to take advantage of government incentives for purchasing electric vehicles. However, dealers report that reimbursements are taking weeks or even months to process, leaving them to cover the upfront costs.
According to industry sources, the backlog has affected hundreds of dealerships, particularly smaller operations that lack the financial reserves to absorb the delays. Some dealers have threatened to stop offering point-of-sale rebates, which could slow EV adoption.
Government Response
Transport Canada acknowledged the processing delays, attributing them to the high volume of claims and the need to verify eligibility. A spokesperson stated that additional staff have been assigned to handle the workload, and the agency is working to clear the backlog within the coming weeks.
“We understand the importance of timely payments to dealers and are committed to streamlining the process,” the spokesperson said. “The program has been overwhelmingly popular, which is a positive sign for Canada’s transition to zero-emission vehicles.”
Dealer Frustration
Dealers, however, remain frustrated. John Smith, a dealer in Ontario, said his dealership is owed over $500,000 in rebates. “We’re financing the government’s program. It’s not sustainable,” he said. The Canadian Automobile Dealers Association has called for a dedicated payment system to ensure faster reimbursements.
Despite the issues, the program has been successful in boosting EV sales. Data shows that EV market share has increased by 15% since the program’s launch, with the $122 million in claims representing tens of thousands of vehicles.
The federal government has set a target of 100% zero-emission vehicle sales by 2035, and programs like this are seen as critical to achieving that goal. However, the payment delays threaten to undermine dealer confidence and consumer access to rebates.
