Prime Minister Mark Carney announced on Friday that Canada’s federal electric vehicle (EV) sales mandate will be delayed by at least one year. Originally set to take effect in 2026, the policy would have required 20% of all new vehicle sales to be electric or plug-in hybrid models.
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The mandate, introduced under former Prime Minister Justin Trudeau, was designed to increase gradually each year, culminating in a 100% target by 2035 for all new light-duty vehicle sales to be electric or plug-in hybrids.
Speaking at a press conference in Mississauga, Ontario, Carney said the 2026 requirement is now on hold, and a 60-day review of the entire program is underway. The review will examine potential revisions to the sales targets and explore ways to introduce more flexibility and reduce costs.
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In a background briefing, government officials indicated that even the 2035 target could be reconsidered as part of the review process.
Carney emphasized that Canadian automakers are facing financial strain due to the ongoing trade tensions with the United States. “They’ve got enough on their plate right now,” he said, noting that while the mandate is not being repealed, it is being reassessed within a broader strategy focused on climate and economic competitiveness.
Electric vehicle sales in Canada had reached a peak of 18% last year, supported by consumer rebates of up to $5,000. However, sales declined sharply after the government abruptly ended the rebate program when funding ran out. As of June, EVs accounted for just 8% of new vehicle sales, according to Statistics Canada.
While the government has pledged to reinstate EV rebates, no timeline has been provided, frustrating automakers who say the uncertainty is dampening consumer demand.
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