Prime Minister Mark Carney says Ottawa will pause next year’s rule requiring automakers to sell a fixed share of electric vehicles. Instead, the government will launch a 60-day review of the mandate to explore ways to cut costs and make compliance more flexible.
“And it’s not all about money. Some of it is about regulation. So 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 on Friday at a press conference in Mississauga, Ontario.
Former Prime Minister Justin Trudeau introduced the mandate in 2023, setting a target that 20% of new passenger vehicles sold in Canada must be zero-emission by 2026. The rule was part of broader zero-emission vehicle targets (including 60% by 2030 and 100% by 2035) finalized in December 2023. But with the current U.S.-Canada trade war and tariffs, the auto industry was not happy about it with the current market conditions.
The Canadian Automotive Dealers Association (CADA) welcomed the move, calling it “a positive first step as it gives certainty to consumers and the automotive industry for the next year, and will help to avoid a consumer availability and affordability crisis in the short term.”
The group also urged provinces with their own EV sales rules to align with Ottawa. “The Provinces of Quebec and British Columbia should immediately follow this lead to avoid perpetuating internal trade barriers,” the association said.
CADA confirmed it will take part in the federal review. “CADA will be engaging actively with the Federal government during the review period to ensure that any adjusted plan considers the varying differences in consumer demand across the country, as well as what is reasonable and possible with the current, and planned charging and energy infrastructure.”
Check out the video of Carney’s announcement below:
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