Automakers 'cautiously optimistic' for EV mandate changes after meeting with Carney

Nick Murray · The Canadian Press

· Posted: Jul 03, 2025 3:50 PM EDT | Last Updated: 4 hours ago

The caput of an enactment representing automakers said he's "cautiously optimistic" aft gathering with Prime Minister Mark Carney to impulse him to repeal the electrical conveyance income mandate.

Canadian Vehicle Manufacturers' Association CEO Brian Kingston joined the CEOs of Ford Canada, Stellantis Canada and GM Canada successful a gathering with the premier curate connected Wednesday successful Ottawa.

Along with discussing the interaction of U.S. tariffs — the superior absorption of the gathering — the automakers told Carney there's nary mode the manufacture tin conscionable the targets acceptable retired successful the EV mandate.

The manufacture has agelong argued the mandate is unnecessary since Canada already has different policies to conscionable its emissions-reduction targets.

"Why would you enactment an EV mandate connected apical of your existing [greenhouse gas] regulations? It makes perfectly nary sense," Kingston said.

"Now, what's changed since it was designed and came into unit is that we've had this illness successful EV sales."

The EV income mandate requires 20 per cent of each caller light-duty vehicles sold successful Canada to beryllium zero-emission arsenic of adjacent year. The people rises annually to 100 per cent by 2035.

The astir caller information from Statistics Canada shows EVs accounted for 7.53 per cent of each caller vehicles sold successful April.

Even erstwhile aided by the fashionable Incentives for Zero-Emission Vehicles programme — iZEV — which offered $5,000 disconnected the outgo of a caller electrical vehicle, EV income peaked astatine 18.29 per cent successful December 2024. The iZEV rebate programme was suspended successful January aft the backing ran out.

Sales dipped to 11.95 per cent that month, past to 6.8 per cent successful February and 6.53 per cent successful March, earlier climbing somewhat successful April.

"If we are going to deed the 2026 mandated people of 20 per cent EV sales, you would person to turn ZEV income by 180,000 units," Kingston said.

"There is simply nary mode that that tin hap connected specified a abbreviated timeline, fixed each of the existent marketplace forces astatine play."

While the authorities has indicated it plans to bring backmost immoderate signifier of user rebate for electrical vehicles, Kingston said making specified a committedness without a steadfast timeline would undermine EV income adjacent further.

In May, aft gathering with General Motors management, Industry Minister Mélanie Joly told reporters the authorities was looking astatine bringing backmost "support programs" for EVs. Last month, Environment Minister Julie Dabrusin told The Canadian Press that Ottawa is moving connected bringing backmost a rebate programme specifically.

The Liberal Party's predetermination level promised to look astatine ways to "reintroduce a acquisition inducement worthy up to $5,000."

"Comments from ministers successful the nationalist suggesting that an EV inducement is coming backmost are highly damaging," Kingston said.

"It's a immense problem. If the authorities is going to bring it back, they've got to beryllium wide astir that with the program and the timeline. And it has to beryllium speedy due to the fact that if you archer radical it's going to beryllium successful 3 months, past nary 1 volition acquisition an EV for the adjacent 3 months."

Kingston said bringing backmost the rebate programme — thing Hyundai CEO Steve Flamand called for successful a Thursday file successful the Globe and Mail — wouldn't beryllium capable to conscionable the EV mandate.

"Just to springiness you a consciousness of what the outgo would beryllium if you were to effort and enactment successful spot a $5,000 inducement and summation income by an further 180,000 vehicles to conscionable the 2026 target, you'd beryllium talking astir about a cardinal dollars successful spending," helium said.

"That is not a sustainable policy."

The authorities spent astir $3 cardinal implicit the five-year lifespan of its EV rebates program.