Latest news with #subsidyprogram
Sustainability Times
7 days ago
- Automotive
- Sustainability Times
'We're Not Paying a Cent': Canada Freezes $40 Million in Aid and Declares War on Tesla's Controversial Operations
IN A NUTSHELL 🚗 Tesla submitted nearly 8,700 subsidy requests in just 72 hours, draining funds meant for electric vehicle incentives. submitted nearly 8,700 subsidy requests in just 72 hours, draining funds meant for electric vehicle incentives. 🛑 The Canadian government froze $43.2 million in payments to Tesla and excluded the company from future subsidy programs. 🇨🇦 Trade tensions between Canada and the U.S. have risen, impacting Tesla's operations and sales in the Canadian market. 🔍 An ongoing investigation into subsidy exploitation could redefine how electric vehicle incentives are managed. In the world of electric vehicles, few companies have made as significant an impact as Tesla. However, recent developments in Canada have placed the company under intense scrutiny and led to a potential shake-up in its operations. Ottawa has accused Tesla of exploiting a legal loophole to secure the lion's share of subsidies intended for the electrification of transportation. This has triggered a comprehensive investigation, and the company, led by Elon Musk, now faces exclusion from future subsidy programs in Canada. Tesla Accused of Gaming the Canadian Subsidy Program In a surprising turn of events, between January 10 and 12, 2025, Tesla submitted nearly 8,700 reimbursement requests under Canada's iZEV program, designed to promote the purchase of electric vehicles. This sudden flood of applications, concentrated over just 72 hours, accounted for nearly 90% of all requests received during that period. According to reports, this move effectively drained the funds allocated for several months within a single weekend. The strategy involved adjusting the price of the Model Y below the $41,000 threshold, making it eligible for subsidies. While this maneuver was not illegal, the speed and scale of the operation raised significant concerns. Notably, a single Tesla dealership in Quebec reported over 4,000 sales in just two days, claiming $15 million in subsidies. This equated to selling two cars per minute non-stop, prompting speculation about the legitimacy of these transactions. Observers have suggested that the situation might be a case of administrative backlog. Others argue that it could be a clever exploitation, or even abuse, of a subtle program rule change. This change allowed buyers to submit subsidy requests post-delivery, which could have enabled a surge of retroactive claims. 'Game-Changer for Riders': Affordable Adventure E-Moto Launches With Spare Battery Option for Nonstop Off-Road Freedom The Freeze on Public Subsidies to Tesla: A Political and Regulatory Message In response to this overwhelming influx of subsidy requests, the Canadian government acted promptly. On March 23, Minister of Transport Chrystia Freeland announced the suspension of all pending payments to Tesla, amounting to $43.2 million. She clarified that no funds would be released until each claim had been individually verified, effectively halting Tesla's access to these subsidies. Furthermore, Minister Freeland declared that Tesla would be excluded from future subsidy programs as long as the United States maintained tariffs deemed 'illegal.' This decision is both economic and political, aiming to assert Canadian sovereignty against perceived unfair trade practices. This exclusion has ripple effects. Other automakers, like Ford, who relied on these subsidies to sell their electric models, now face $7.2 million in unpaid claims. Independent dealerships that advanced funds in anticipation of reimbursements might not recover their investments, underscoring the broader economic implications of the decision. 'Unprecedented security surge': FBI deploys elite task force to shield these iconic Tesla assets from looming threats An Uncertain Future for Tesla in Canada Since the suspension of public subsidies in March 2025, Tesla has faced a widening exclusion from subsidy programs across Canada. Beyond the federal freeze of $43 million, several provinces, including British Columbia, Nova Scotia, Prince Edward Island, and Manitoba, have removed Tesla from their electric vehicle incentive programs, citing concerns over U.S. tariffs and Elon Musk's political influence. Tesla has countered these allegations by stating that the subsidy requests submitted in January were due to administrative delays, not an attempt to manipulate the system. The company expressed surprise at the lack of direct communication from Canadian authorities regarding the ongoing investigation. Meanwhile, trade tensions between Canada and the United States have escalated, with the Trump administration imposing 25% tariffs on Canadian imports. In retaliation, Canada announced countermeasures, further complicating the business environment for American companies like Tesla operating in Canada. 'World's first-ever': Denmark's historic tax on cow farts shocks climate activists worldwide As a result of these developments, Tesla's sales in Canada reportedly plummeted by 70% in January 2025 compared to December 2024. This decline is partly attributed to the suspension of federal and provincial subsidies, which made Tesla vehicles less competitive in the Canadian market. What's Next for Tesla and the Canadian Electric Vehicle Market? The ongoing government investigation leaves Tesla's future in Canada uncertain. The company faces a complex regulatory and commercial landscape as it seeks to regain its footing in the Canadian market. The situation has sparked a broader discussion on the effectiveness and fairness of subsidy programs and their impact on competition. While Tesla navigates these challenges, the Canadian government may need to reassess its subsidy frameworks to prevent potential exploitation and ensure that funds are distributed equitably among eligible automakers. The outcome of this investigation could set a precedent for how countries balance promoting electric vehicle adoption with maintaining fair market practices. As the electric vehicle industry continues to evolve, how will Canada and other nations strike a balance between encouraging innovation and ensuring a level playing field for all manufacturers? Our author used artificial intelligence to enhance this article. Did you like it? 4.4/5 (23)
Yahoo
07-07-2025
- Automotive
- Yahoo
Government subsidies drive China's vehicle market up
China's loght vehicle (LV) market continued its strong performance in May 2025, with sales rising by 10% YoY to approximately 2.1 million units. The increase was primarily driven by robust demand for PVs (passenge vehicles or cars), which expanded by 12% YoY to 1.9 million units, representing 88% of total LV sales for the month. Government stimulus measures played a crucial role in supporting the market's performance, particularly the extended vehicle trade-in and scrappage incentive programs. These policies significantly boosted domestic demand, with NEVs being notable beneficiaries. In contrast, LCV sales suffered a moderate 9% YoY decline. On a YTD basis, LV sales in January-May grew by 12% compared to the same period in 2024. The national subsidy program that encourages consumers to replace older vehicles with newer models remained a key driver of spending. The seasonally adjusted annualized selling rate for May stood at 27.9 million units, a 5% decrease from April's figure but still a historically strong level. The Chinese government has been instrumental in accelerating the growth of the LV market through a comprehensive suite of supportive policies. The extension of vehicle trade-in and scrappage incentive programs—now valid until the end of 2025—has significantly boosted domestic demand, particularly for NEVs. These incentives, which include additional subsidies of up to CNY5,000 ($698) for NEV purchases compared to traditional fuel vehicles, have effectively lowered ownership costs and encouraged consumer adoption. The rapid expansion of China's e-commerce sector has profoundly impacted the LV market, particularly in the Commercial Vehicle segment. The surge in online retail and last-mile logistics has heightened demand for LCVs, which are now a critical component of modern supply chains. However, despite this structural demand, LCV sales in May saw a modest 9% YoY decline, reflecting broader macroeconomic pressures and a shift in business investment patterns. In May 2025, total LV production reached 2.6 million units, marking an 11% YoY increase, though only a 1% MoM rise. YTD production for 2025 stands at 12.3 million units, up by 13% compared to the same period last year. PVs, which account for 90% of total LV output, continued their strong performance with May production hitting 2.3 million units (+12% YoY). In contrast, LCV production grew marginally by 0.5% YoY to 263k units, underscoring the segment's slower recovery amid shifting logistical demands and policy focus on NEVs. In May 2025, China's LV exports continued their upward trend and reached 519k units—a 15% YoY increase. This figure made up 20% of total LV production, underscoring the growing importance of overseas markets. The PV segment remained the key growth driver, with shipments rising by 17% YoY to 467k units. In contrast, CV exports saw a slight 0.5% YoY decline to 53k units, reflecting subdued global demand for logistics and transport equipment. On a cumulative basis, China's auto exports totaled 2.1 million units in the first five months of 2025, up by 6% YoY. The recent interim agreement in US-China trade negotiations—which reduced mutual tariffs until August 10, 2025—has provided temporary relief to exporters. However, the long-term outlook remains uncertain as negotiations continue, with potential policy shifts posing risks to trade flows. The export market has become a critical pillar of China's LV industry, contributing significantly to production volumes and manufacturer revenues. While current growth trends are positive, the sector faces headwinds from geopolitical tensions, evolving trade policies, and competitive pressures in key markets. Automakers are closely monitoring developments, as any further changes in tariffs or trade rules could materially impact the export sector in the second half of 2025 and beyond. Based on stronger-than-expected market performances in recent months, we have revised our 2025full-year forecast upward by approximately 200k units. This adjustment reflects the resilience of both domestic demand and export markets, which have demonstrated limited sensitivity to US tariff policies thus far. Domestically, market growth continues to be primarily policy-driven, with promotional incentives and trade-in schemes remaining crucial demand drivers. However, the export sector faces a more nuanced risk profile. While Russia currently serves as the largest single export destination, potential market contraction there would require alternative demand sources to compensate. The industry's ability to diversify exports to other emerging markets—particularly in Southeast Asia, the Middle East, and Latin America—will be critical in maintaining overseas growth momentum. Moving forward, we remain cautiously optimistic in terms of the outlook. The domestic market's policy-supported foundation appears stable in the near term, though export strength will depend on both geopolitical developments and manufacturers' capacity to adapt to shifting global trade patterns. Continued monitoring of Russian market dynamics and trade policy evolution remains essential for risk assessment. This article was first published on GlobalData's dedicated research platform, the . "Government subsidies drive China's vehicle market up – GlobalData" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
02-07-2025
- Business
- South China Morning Post
Alibaba's US$7 billion subsidy deepens China's instant e-commerce war with JD.com, Meituan
Alibaba Group Holding 's instant commerce service announced on Wednesday a substantial subsidy programme totalling 50 billion yuan (US$7 billion) over the next 12 months for both consumers and merchants, intensifying the fierce competition in China's on-demand delivery sector, where and Meituan are also major players. Advertisement Consumers using Taobao's in-app Shangou service, the instant commerce business of Alibaba, will enjoy significant incentives, including cash vouchers, free purchase coupons, and subsidised prices on select items, according to the company. Merchants will benefit as well, receiving support through store launch subsidies, product discounts, delivery subsidies, and reduced or waived commissions. Alibaba owns the South China Morning Post. 'Taobao Shangou leverages technological and business model innovations to build a highly efficient, integrated consumer platform … channeling substantial online traffic to offline businesses,' the company said, while emphasising its strategy as 'anti-involution, pro-consumption'. 'Involution' refers to increasingly intense internal competition that leads to diminishing returns, a phenomenon seen across various parts of Chinese society in recent years that has drawn concerns. food delivery riders in Beijing. Photo: Shutterstock Images Launched late in April, Taobao Shangou – which means 'flash shopping' in Chinese – expanded nationwide in early May, offering rapid delivery for a variety of products, including food, electronics, clothing and flowers. Deliveries are fulfilled by Alibaba's food delivery subsidiary,
CTV News
16-05-2025
- Automotive
- CTV News
Quebec renews subsidy program for electric school buses
The Lion Electric Company's lithium-ion battery manufacturing facility in Mirabel, Que., is shown on Sept. 14, 2023. THE CANADIAN PRESS/Christinne Muschi MONTREAL — The Quebec government is renewing a subsidy program for electric school buses that expired in March. The program will now offer subsidies of $240,000 for each purchase of an electric school bus, up from a maximum of $175,000. The news comes a week after a group of investors submitted a revised offer to buy Quebec vehicle-maker Lion Electric. Their offer was contingent on the government renewing the subsidy program, which was a key to Lion's success in Quebec. Quebec is aiming to electrify 65 per cent of its school bus fleet by 2030, and the new program will run until 2028. The provincial government says there are about 1,600 electric school buses in Quebec, out of a total fleet of around 11,500 buses. This report by The Canadian Press was first published May 16, 2025.
