Automakers are expressing cautious optimism following a recent meeting with Prime Minister Mark Carney, where they pressed for changes to Canada’s electric vehicle (EV) sales mandate. Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association, joined the Canadian heads of Ford, Stellantis, and GM in Ottawa to raise concerns about the feasibility of current EV targets, particularly amid declining sales and the absence of consumer incentives.
While the primary focus of the meeting was on U.S. tariffs, the automakers emphasized that the EV mandate — requiring 20 per cent of all new light-duty vehicles sold in Canada next year to be zero-emission — is no longer realistic. That number rises to 100 per cent by 2035, but Kingston said the industry cannot meet such targets without urgent policy changes.
Kingston criticized the mandate as redundant, given Canada’s existing greenhouse gas regulations, and pointed to plummeting EV sales as evidence. “Why would you put an EV mandate on top of your existing (greenhouse gas) regulations? It makes absolutely no sense,” he said. EV sales have fallen dramatically since the federal Zero-Emission Vehicles (iZEV) rebate program ran out of funding. After peaking at 18.29 per cent in December, sales dropped to 6.53 per cent by March. A small rebound to 7.53 per cent in April was largely due to Quebec reintroducing its provincial incentive.
According to Kingston, hitting the 2026 target would require boosting EV sales by 180,000 units — an unlikely scenario without immediate intervention. He warned that vague government promises to revive the federal rebate program are hurting the market. “If the government is going to bring it back, they’ve got to be clear about that with the plan and the timeline,” he said. “If you tell people it’s going to be in three months, then no one will purchase an EV for the next three months.”
Environment Minister Julie Dabrusin and Industry Minister Mélanie Joly have indicated that a new incentive program is in the works, but no formal plan or timeline has been announced. The Liberal party’s platform includes a pledge to consider a rebate worth up to $5,000, but Kingston stressed that without a rapid rollout, even that won’t be enough. He estimated it would cost nearly $1 billion to implement a rebate plan capable of meeting the 2026 target.
Hyundai Canada CEO Steve Flamand echoed those concerns. He said the sudden halt of the iZEV program disrupted supply chains and called for stable, predictable support policies. Flamand supports the principle of the EV mandate but said the current pace is not aligned with consumer demand. “We believe in the cause, but right now I think 20 per cent… it’s just not realistic. Nobody’s going to do that,” he said.
Transport Canada is currently holding consultations on the rebate program. Flamand is scheduled to meet with the department next week to discuss potential solutions. Meanwhile, automakers are waiting for clarity from Ottawa, hoping that swift and concrete action will prevent the EV mandate from becoming a missed opportunity — or a policy failure.