Automakers Resist Electric Vehicle Sales Mandates Amid Pause in Federal Incentives

January 14, 2025 TruthUSA

Automakers in Canada are urging the cessation of electric vehicle sales mandates due to the sudden suspension of federal EV incentives and the sluggish development of charging infrastructure.

Various groups, including the Canadian Vehicle Manufacturers’ Association, Global Automakers of Canada, and the Canadian Automobile Dealers Association, collectively made this plea shortly after being notified that the incentive program was ending more than two months ahead of schedule.

Transport Canada announced on Friday that it was pausing the incentive program that provides Canadians with rebates of up to $5,000 when purchasing or leasing electric vehicles because the program’s funding has been exhausted earlier than the planned March 31 pause.

The department disclosed that over 546,000 vehicles have been sold or leased with incentives through the program since its inception in 2019, while EV sales represented 11.7 percent of Canada’s market in 2023, up from 3.1 percent in 2019.

Automakers have been resisting EV mandates in Canada since their introduction, arguing that these mandates cannot be met unless affordability and infrastructure issues are addressed first.

Canada has mandated that 20 percent of all new vehicle sales must be electric by 2026 and 100 percent by 2035.