EV sales fell to 7.53% in April, well below Canada’s upcoming 20% mandate.
Automakers urge Ottawa to reconsider mandate or restore rebates to avoid missing 2026 targets.
Liberal platform backs incentives, but no timeline yet for new EV purchase support programs.
Automakers have expressed cautious optimism following a meeting with Prime Minister Mark Carney, as industry leaders continue to urge the federal government to reconsider Canada’s electric vehicle sales mandate, as demand continues to drop and financial concerns arise.
Executives from Ford Canada, Stellantis Canada, GM Canada and the Canadian Vehicle Manufacturers’ Association (CVMA) met with Carney in Ottawa this week to discuss the impact of U.S. tariffs on Canadian auto manufacturing. During the meeting, concerns over the feasibility of achieving Canada’s mandated zero-emission vehicle sales targets were also raised.
CVMA President Brian Kingston said the meeting left everyone on hand “cautiously optimistic” that Ottawa may adjust its approach. “Why would you put an EV mandate on top of your existing greenhouse gas regulations? It makes absolutely no sense,” Kingston told The Canadian Press.
Under current regulations, 20% of all new light-duty vehicles sold in Canada must be zero-emission by next year, increasing annually to reach 100% by 2035. Recent sales data show that EVs accounted for only 7.53% of new vehicle purchases in April, a far cry from meeting the upcoming requirement.
The expiry of Canada’s popular iZEV program in January, which provided up to $5,000 off the cost of a new electric vehicle, has been linked to a sharp decline in sales. EV market share fell from a high of 18.29% in December to 11.95% in January, then dropped below 7% by March before edging slightly higher in April.
Kingston said hitting the 2026 target would require an additional 180,000 ZEV sales, a target he described as unrealistic without major new supports. He estimated that reinstating a $5,000 incentive to close this gap could cost nearly $1 billion. The previous rebate program cost Ottawa nearly $3 billion over five years.
EV Incentives Could End by September 2025 Under New U.S. Senate Budget Bill – UPDATE
The Liberal party’s election platform promised to explore reintroducing purchase incentives worth up to $5,000. In May, Industry Minister Mélanie Joly said the government was looking at new “support programs” for EV buyers, while Environment Minister Julie Dabrusin confirmed Ottawa is working on bringing back a rebate.
Kingston warned that public comments about possible future rebates could hurt the current market by encouraging consumers to delay purchases in anticipation of renewed incentives. “If you tell people it’s going to be in three months, then no one will purchase an EV for the next three months,” he said. As it stands, no official timeline has been provided for when a new incentive could take effect.
Meanwhile, the U.S. has just announced it will be killing the Federal tax credit program come late September…
Source: Automotive News
