Canada's New $5,000 EVAP Rebate Excludes Chinese EVs — What Buyers Need to Know

The application portal for the new EVAP (Electric Vehicle Affordability Program) opens March 31, 2026. But if you had your eye on a BYD or Chery, you'll want to read this carefully.

The programme offers $5,000 for battery-electric vehicles and $2,500 for plug-in hybrids. The vehicle must cost $50,000 or less. So far, nothing new.

The critical change: the vehicle must be manufactured in Canada or a free-trade partner country. China does not have a free-trade agreement with Canada. Result: Chinese EVs are excluded from the rebate.

What this means for your wallet in practice:

A Hyundai Kona Electric at $42,999 effectively costs you $37,999 with the EVAP rebate. A Chery Omoda E5 at $30,000 costs you... $30,000. The gap narrows considerably.

[Updated April 2026] However, some provincial incentives remain accessible. Québec's Roulez vert programme ($2,000, reduced from $7,000 in January 2026, ending December 2026) and PEI ($4,000) do not have country-of-origin requirements. CleanBC ended November 2025, Nova Scotia's programme ended May 2025, and New Brunswick's ended July 2025. In Québec, an Omoda E5 at $30,000 minus $2,000 = $28,000. That's still competitive.

The EVAP programme has $2.3 billion in funding and runs until March 2031. The rebate amount drops to $4,000 for BEVs in 2027. This is a declining advantage for established brands, which could actually benefit Chinese automakers in the long run.

The takeaway for shoppers: don't just compare sticker prices. Calculate your total cost including federal AND provincial incentives. In some provinces, the Chinese EV advantage is massive despite the EVAP exclusion. In others, it's more marginal.