Calls for electric-vehicle rebates in Manitoba as feds say new cars, trucks must be emission-free by 2035

Members of Manitoba's automotive industry say they want the provincial government to offer incentives for people to make the switch to electric vehicles, after Ottawa unveiled a new target that will require all new passenger vehicles to be emissions-free by 2035.

On Tuesday, Federal Environment Minister Steven Guilbeault said automakers will be encouraged to phase out production of gasoline or diesel powered passenger vehicles, while earning credits for increasing the proportion of electric vehicles they sell.

Manufacturers will have to ensure a minimum of 20 per cent of the vehicles they offer are EVs by 2026, with that number increasing until it reaches 100 per cent by 2035, he said.

Guilbeault said Quebec and British Columbia are already above the 20 per cent threshold, and all provinces should get "on board" with the EV plan.

However, the head of one of Winnipeg's largest car dealerships says a number of barriers are driving some away from electric vehicles.

"I think it's an affordability issue — that's the No. 1 thing," said Steve Chipman, CEO of Birchwood Automotive Group.

Purchase incentives from the province would help boost EV sales, he said. Manitobans can get rebates of up to $5,000 from the federal government, but unlike British Columbia and Quebec, Manitoba doesn't have a provincial rebate of its own.

2% of registered vehicles are EVs, hybrids: MPI

EasyEV's Marc Beghin, whose company installs residential and commercial electric vehicle chargers in Manitoba, also thinks the lack of a provincial rebate program is hurting electric vehicle adoption in Manitoba.

But Beghin, who drives a 2017 Nissan Leaf EV, says he's optimistic about the new federal target.

"We're very encouraged. We're happy to hear it moving. I think 2035 is a realistic target as well," said Beghin, adding that the new rules will help boost production of EVs in Canada and increase their availability.

Manitoba Public Insurance says there are 2,861 electric passenger vehicles and 15,155 hybrids registered in the province, representing just under two per cent of all registered vehicles here.

Chipman says EVs account for about two per cent of sales at Birchwood's dealerships.

"It's an expensive vehicle, and there's just not enough demand for it," he said.

"Range anxiety" over how far the cars can go before a recharge can also be an issue for some drivers, Chipman said. A lack of charging stations in the province and extreme weather effects on batteries are considerable factors for Manitobans.

"Battery technology is going to have to improve, and it will — but you've got to get the cost of the cars down," he said.

EVs need to be accessible: minister

Manitoba Minister of Environment and Climate Change Tracy Schmidt says the NDP government is holding to its campaign promise to offer additional rebates of $4,000 on new electric vehicles and $2,500 used ones.

"We think that that's going to help Manitobans make the switch to electric vehicles," she said. "We are currently working very hard to … get that program off the ground as soon as possible."

During his election campaign last summer, now Premier Wab Kinew said the rebates would cost the province an estimated $7 million per year. Schmidt said she could not confirm costs of the rebate program yet.

She said Ottawa's announcement on Tuesday is a significant step in the fight against climate change.

"We need to work together across governments to collaborate on a just transition, and I think that it's important that electric vehicles are accessible."

Schmidt also said a detailed map of current charging infrastructure locations and implementation targets for charging stations across the province are also currently in the works.

Is Manitoba ready for the switch to electric vehicles?

12 months ago

Duration 2:32

CBC's Josh Crabb gets local reaction to the federal government's plan to completely phase out sales of new gas-powered vehicles by 2035.

The government is also working with Manitoba Hydro to make sure it has the capacity to power more EVs. It's exploring opportunities to diversify the province's energy supply through geothermal, solar and wind energy, said Schmidt.

EasyEV's Beghin said his company, which kicked into gear 18 months ago, has installed 50 residential chargers and more than 20 commercial ones.

However, he says charging infrastructure improvements are needed as well to help Manitobans keep their EVs charged up no matter where they travel.

"You do have to plan your trips," he said, but "as the infrastructure gets built out — just like the adoption of oil — eventually it will be there."