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Carney Scraps EV Mandate

February 5, 2026 by Newsdesk

Prime Minister Mark Carney unveiled a national automotive strategy Thursday aimed at stabilizing Canada’s vehicle manufacturing sector amid trade pressure and slowing electric vehicle demand. The government will repeal the federal EV sales mandate and replace it with greenhouse gas emissions standards targeting 75 per cent EV adoption by 2035, with flexibility for automakers to meet reductions through other technologies.

Ottawa will reintroduce consumer EV rebates worth up to $5,000 and invest $1.5 billion in charging infrastructure. The strategy also dedicates $3 billion from the Strategic Response Fund to vehicle manufacturing, while maintaining retaliatory tariffs against U.S. autos and proposing tradeable import credits to incentivize domestic production.

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