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Automakers Press for Repeal of Federal EV Mandate as Ottawa Considers $5,000 Rebate

Industry leaders warn that current incentives fall short of supporting federal EV sales targets

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Overview

  • On May 26 the presidents of Ford, GM, Honda, Stellantis and Toyota pressed Prime Minister Mark Carney to urgently repeal the zero-emission vehicle sales mandate
  • The federal requirement sets escalating targets of 20% ZEV sales by 2026, 60% by 2030 and 100% by 2035
  • EV registrations fell to 8.7% of new vehicle sales in the first quarter, marking a 23% drop after federal and provincial rebate programs were paused in January
  • Automakers say they have already limited combustion-engine sales or purchased credits from Tesla to comply with the looming 2026 benchmark
  • Transport Minister Chrystia Freeland’s office is evaluating a potential $5,000 EV rebate and mandate adjustments but has not announced a timeline