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It’s a good bet the local electric vehicle market is about to get a boost.
Many enthusiasts believe Manitoba’s new EV incentive (announced in Tuesday’s provincial budget) — $4,000 for new vehicles under $70,000 and $2,500 for pre-owned ones — is just what’s needed to get the sector rolling.
According to recent statistics from Manitoba Public Insurance, the Crown corporation has only about 3,100 electric vehicles and 16,000 hybrids registered.
Previously, unlike many provinces, there had been no EV purchase incentive in Manitoba, beyond the $5,000 federal incentive.
Meantime, EV sales have been disappointing across the country, with many manufactures recently cutting prices. Some of those cuts have been specifically designed to allow certain vehicles to be eligible for the federal incentive.
Scott Campbell, managing partner at Mid-Town Ford in Winnipeg, was an early adopter. He sat on Ford’s national EV round table and invested about $500,000 in electric charging infrastructure at his dealership.
He currently has about 50 EVs on the lot: 30 Mach-E Mustangs and 20 F-150 Lightnings. (He figures other Ford dealerships in the region may have less than half that number on hand.)
Ford is aggressively supporting EV sales — including offering zero per cent interest — with Mach-E sales totals increasing by more than 20 times across the country (from 70 in February 2023 to 1,700 this year).
However, Campbell said, EV sales have been slower than he’d hoped for in Manitoba.
“Our provincial incentive is going to kick-start things,” he said Wednesday.
For instance, with the new provincial rebate, along with the federal offering and recent Ford incentives, certain models of the Mustang Mach-E can go for about $49,000.
James Hart, president of the Manitoba Electric Vehicle Association, agrees Manitoba has fewer EVs per capita relative to other provinces. He believes the new incentive is also going to mean there will soon be more models to choose from.
Many manufactures will allot more vehicles to dealerships that have made the investment in charging infrastructure and servicing equipment. Hart said it is likely more will make that investment now that consumers will get help with the purchase price.
“Until now, unless you’re willing to take whatever they might have on the lot, there’s typically a massive waiting list,” he said.
While there are plenty of EVs for sale at prices above $70,000, Hart said the Manitoba incentive is well-designed because “it will benefit the people who need the incentive the most.”
A new Tesla dealership recently opened in Winnipeg, but it’s not known when it will have inventory on the lot. Potential customers can test drive and order cars there but still have to go to Saskatoon to pick up a purchased vehicle.
(The Manitoba EV incentive requires impacted vehicles to be purchased at a Manitoba dealership. It’s not immediately clear as to whether those Saskatoon-based Teslas will qualify.)
Trevor Nott, of Nott Autocorp, had previously been the only pre-owned Tesla shop in town. He said he’s got some 15 pre-owned Model 3s on his south Winnipeg lot right now, going for about $37,000.
“I think this will be a huge boost for the market in Manitoba,” he said. “As a little guy, this really helps. We all know what the last year has been like.”
The province has budgeted $5.4 million for the program, which is scheduled to run for two years (and will be administered by MPI).
Meantime, Quebec has announced it is ending its rebate program this year. Ontario has also spiked its provincial plan.
With a federal mandate to get EVs to at least 20 per cent of new light-duty vehicles offered for sale by 2026, increasing to 60 per cent by 2030 and 100 per cent by 2035, Manitobans have some catching up to do.
Geoff Sine, executive director of the Manitoba Motor Dealers Association, said the incentive puts Manitoba in line with other provinces.
“People who are keen to buy an EV come into a dealership, but they have to turn away because of the price,” he said. “This is wonderful news.”
Environment Minister Tracy Schmidt said: “Many Manitoba families want to make the switch to an electric vehicle or plug-in hybrid electric vehicle, but the sticker shock can make this an unrealistic dream. I am proud that our new EV rebate program will help Manitobans access sustainable transportation.”
Martin Cash
Reporter
Martin Cash has been writing a column and business news at the Free Press since 1989. Over those years he’s written through a number of business cycles and the rise and fall (and rise) in fortunes of many local businesses.
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