TORONTO – Automakers in Canada are calling for the end of electric vehicle sales mandates because of the sudden pause of federal EV incentives and what they say is the slow build-out of charging infrastructure.
Groups including the Canadian Vehicle Manufacturers’ Association, Global Automakers of Canada and the Canadian Automobile Dealers Association collectively made the request shortly after they were informed the incentive program was ending more than two months early.
Transport Canada said Friday it was halting the incentive program that offers Canadians rebates of up to $5,000 when buying or leasing electric vehicles because funding for the program has run out ahead of the scheduled March 31 pause.
The department says more than 546,000 vehicles have been sold or leased with incentives through the program since it began in 2019, while EV sales accounted for 11.7 per cent of Canada’s market in 2023, up from 3.1 per cent in 2019.
Automakers have been pushing back against EV mandates in Canada since they were announced, saying they can’t be achieved unless affordability and infrastructure concerns are first addressed.
Canada has mandated that 20 per cent of all new vehicles sold must be electric by 2026 and 100 per cent by 2035.
This report by The Canadian Press was first published Jan. 14, 2025.
