Auto industry urges national strategy to remove Canada's EV sales mandate

Auto industry leaders say they would welcome a reported plan to scrap Canada's EV sales mandate as the federal government prepares to unveil a national automotive strategy; the 2026 mandate was paused last fall and an announcement is expected Thursday.

Auto industry leaders and labour groups are reacting to a reported federal move to drop the EV sales mandate as Ottawa prepares a national automotive strategy. Prime Minister Mark Carney and Industry Minister Mélanie Joly are reported to unveil the strategy on Thursday, according to sources. The government paused the 2026 requirement for 20 per cent EV sales last fall while it reviews the 2030 and 2035 targets. A CBC report says the strategy may replace the mandate with new fuel-efficiency standards and credits, and may reinstate rebates and charging infrastructure plans; the Star has not confirmed that report. Reported developments: - The 2026 EV sales requirement (20 per cent) was paused while the government reviews 60 per cent by 2030 and 100 per cent by 2035 targets. - The Canadian Vehicle Manufacturers Association said the mandates create high compliance costs, citing a government credit price of $20,000 and an industry estimate of about $3 billion in costs to 2030. - Unifor president Lana Payne emphasized priorities to protect Canadian production and supports for workers during any transition. - CBC reported the new strategy could introduce fuel-efficiency standards and credits, restore federal EV purchase rebates, and expand public charging; this report has not been independently confirmed by the Star. Summary: The government is due to present a national automotive strategy this week, and industry leaders say they would welcome repeal of the EV sales mandate. What the strategy will formally adopt and how it will affect the paused mandates and production plans remains undetermined at this time, with an announcement expected Thursday.