EV Industry Pushes Ottawa to Uphold Electric Vehicle Sales Targets
The electric-vehicle industry says the federal government’s move away from EV sales targets undermines the Canadian sector while threatening investment and job creation.
The government said in September it was dropping the requirement that 20 per cent of car sales be EVs in 2026, and launching a review of the entire program, which raised the requirement to 100 per cent by 2035.
Now, a group of 40 executives in the Canadian EV business is urging Prime Minister Mark Carney to make “reasonable” tweaks but stick with the rules, introduced to reduce carbon emissions that cause climate change.
In an open letter to the Prime Minister, the group said the sales mandate is “more than a climate measure.”
“It leverages Canada’s clean energy, skilled workforce and innovation ecosystem. It lowers transportation costs for Canadians … strengthens domestic supply chains,” said the letter, to be released on Wednesday morning. “We understand that policies must evolve with changing realities. But evolution doesn’t mean retreat. Canada should stand firm on [sales mandates] and provide clear direction.”
The government considers an EV to be a car powered by a battery, fuel cell or plug-in hybrid system.
Zero-emission vehicles accounted for 8.6 per cent of total motor vehicles sales in the second quarter, according to Statistics Canada. This is a 29-per-cent drop from the same period a year earlier. Purchases of all types of motor vehicles rose by 6 per cent on an annual basis.
The decline in EV sales coincides with the loss of federal and provincial subsidies for such purchases. (The U.S. also recently withdrew programs that provided incentives to buy EVs.)
In the letter, the EV executives call for the reinstatement of the subsidies and for the installation of charging infrastructure to be accelerated. Signatories include executives from Rivian, ChargePoint and Alstom Transport Canada.
“Maintaining the standard with reasonable adjustments will allow Canada to build on its EV industrial leadership, attract long-term investment, and ensure affordability for Canadian drivers,” the group said.
Ottawa’s move to cancel the 2026 sales minimums was welcomed by the traditional car industry, which pointed to slipping EV sales and the expense manufacturers faced to purchase credits if they failed to meet the threshold. The carmakers said the goals presented a burden at a time of uncertainty brought about by U.S. tariffs.
Canada has seen billions of dollars invested in the EV industry, from battery plants to charging networks. A handful of projects are moving ahead, including the $3.7-billion NextStar Energy plant in Windsor, Ont., a joint venture between Stellantis NV STLA-N and LG Energy Solution.
But amid slowing demand for EVs, Honda Canada postponed its $15-billion EV and battery project in Ontario, and other carmakers have cancelled EV models.
This article was first reported by The Globe and Mail
