The federal government is overhauling how electric vehicles are built, sold, and supported as U.S. tariffs and global competition put pressure on the country’s auto sector.
More than 90 percent of vehicles made in Canada are exported to the United States. With new U.S. tariffs in place, Ottawa says it needs to speed up domestic EV production and reduce reliance on a single market.
Prime Minister Mark Carney announced a new auto strategy on Thursday that changes EV rules, incentives, and trade policy. Previous reports from CBC News and CTV News first ‘leaked’ the changes, citing unnamed sources (likely government insiders feeding the media).
A major shift is the removal of the Electric Vehicle Accessibility Standard. It will be replaced with stricter emissions targets that give automakers more flexibility in how they comply. Under the new plan, EVs are expected to account for 75 percent of new vehicle sales by 2035 and 90 percent by 2040.
To boost demand, the government is launching a 5-year EV affordability program offering up to $5,000 off battery electric and fuel-cell vehicles and up to $2,500 off plug-in hybrids priced at $50,000 or less, made by countries we have free trade agreements with. This applies to individuals and businesses who purchase or lease. That price cap will not apply to Canadian-made EVs and PHEVs. So yup, the federal EV rebate is back after running out of money.
For example, Tesla’s recently added Model Y Standard RWD is priced at $49,990 and is just under the price cap. That could discount this EV down to $44,990.
Ottawa is also committing $1.5 billion to expand its national EV charging network. On the manufacturing side, $3 billion will be set aside to help auto plants retool for EV production, along with tax incentives for companies investing in zero-emission technologies in Canada.
The strategy keeps counter-tariffs on U.S. auto imports and allows a limited number of Chinese-made EVs into Canada under a new partnership aimed at attracting investment and joint ventures.
Ottawa reiterated that the auto sector employs more than 500,000 people. With EVs expected to make up nearly 40 percent of global car sales within five years, the government says the changes are meant to keep Canada competitive as the industry shifts away from gas-powered vehicles.
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The main problem with EVs is they are still way to expensive to low to even some in middle income families to be able to afford, they need to start making EVs around the $25,000+ mark or even less so more and more families can jump on board with this.
It’ll be interesting to see the starting prices of Chinese EVs when they arrive here.
Keeping Trumpian Smith happy by removing the EVAS. Canada doesn’t have a homegrown car industry (carbon fuels or EV) – we relying entirely on US or Asian manufacturers.
Meanwhile, the BYD Dolphin hatchback starts at $US14,000 in China, the Seagull (called the Mini in Mexico) for under $10,000. We certainly can’t hope for prices anywhere close to that here (or even just the 6% tariff hike), less the rebate – but it would certainly encourage more folks to consider EVs – which might even kickstart investors to create a real Canadian company.
Dreaming. Sit up and cuck like the Canuck we are known for…