Is Canada hitting the brakes on EVs? What Carney is laying out
Global News
Prime Minister Mark Carney says 2026 electric vehicle sales requirements are being paused to add some 'flexibility' for the auto sector, and will reassess current mandates.
Canada’s electric vehicle strategy may be shifting gears, with certain requirements imposed on businesses being delayed as Ottawa considers a new approach.
Prime Minister Mark Carney announced on Friday the federal government is delaying plans to impose minimum sales requirements on car companies for 2026 model years of electric vehicles (EVs), and a 60-day review is being launched that will reassess the current EV mandate program.
“To add flexibility to the automotive sector, we will remove the 2026 electric vehicle availability standard, which specifies the share of new vehicle sales that must be electric next year. This will provide immediate financial relief to automakers at a time of increased pressure on their competitiveness,” Carney said in a speech on Friday.
This come as companies, especially those in the auto sector, say that they have been pressured by higher costs from tariffs in addition to requirements from the federal government to meet electric vehicle sales targets that are proving difficult in recent years.
“Automakers have paid out $12 billion USD in tariff costs. The last thing that we should be doing is putting further costs on Canada’s manufacturing sector when we’re trying to make our way through this increase in protectionism,” says Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers Association.
“We’re encouraged that the government has paused the mandate, that they’re going to undertake a review in 60 days. And we’re looking forward to working with them to getting to the right and final result on this.“
Industry representatives say the best way forward in such a difficult economic landscape is to make it easier for consumers to “make the switch” to electric through incentives and rebates, rather than force companies already under cost pressures.
“Our association members are pleased that the government has recognized that circumstances have changed considerably since the EV standard was put in place,” says David Abrams, president and CEO of Global Automakers of Canada.
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