Canada to Reevaluate EV Mandates for Automakers, Pausing 2026 Start Date
The Canadian government has announced that electric vehicle (EV) mandates for minimum sales figures will be reevaluated in the face of declining EV sales and the ongoing challenges presented by U.S. tariffs.
The original mandates, set to begin in 2026, would have required 20 per cent of new light-duty vehicles to be electrified, with that figure increasing to 60 per cent by 2030. The government mandate was set to prohibit the sales of all internal combustion passenger cars by 2035, with the plan to only sell EVs.
These mandates were a core part of a plan called the Electric Vehicle Availability Standard, the goal of which was to have more access to zero-emission vehicles for Canadians. As of now, the 2026 goal will no longer apply, and the whole strategy is being reviewed.
Many automakers and various trade associations have spoken out against this mandate, claiming the targets set were unachievable for manufacturers.
“The members of the Global Automakers of Canada are pleased that the federal government has recognized that consumer adoption of electric vehicles is not where either government nor industry had anticipated it would be a few short years ago,” association President and CEO David Adams said in a press release responding to the announcement.
“Our members are fully committed to the transition of their product portfolios to electrified transportation and this is the future of our sector, however, that transition can only happen as quickly as consumers are willing to move and it is clear that higher initial upfront cost and the lack of widely available quick, reliable charging infrastructure have hindered uptake.”
According to Bloomberg, only eight per cent of new vehicles sold in Canada were EVs, a decline from 13.8 per cent in 2024, according to Statistics Canada. This sharp decline directly correlates to the cancellation of $5,000 federal incentive for consumers buying a new EV, with the program being cancelled in March.
The decision comes as part of a larger group of “Buy Canada” policies announced by the federal government that aim to support Canadian industries amid tariff threats and make the Canadian economy more competitive.
