- General Motors wants EV policies in Canada to be reflective of consumer demand.
- Canada had planned for all light-duty vehicle sales to be BEVs or PHEVs by 2035.
- Prime Minister Mark Carney has announced a 60-day review of the country’s EV policy.
It’s not just in the US where the federal government is backing away from previous electrification commitments. Last week, Canadian Prime Minister Mark Carney announced that the government will no longer implement a mandate that would have required 20 percent of all new vehicles sold in Canada by next year to be electric. Unsurprisingly, this news has been welcomed by GM.
Read: Canada Walks Back EV Mandate Amid US Trade War
While recently speaking at an EV conference in Vancouver, GM Canada president Kristian Aquilina noted that the transition to electric vehicles will be volatile and that policies should reflect customer demand.
Automaker’s Perspective
“When it comes to EV adoption, it’s not going to be linear,” he said. “It’s going to be a lot of noise in the system that causes adoption to be a little bit more volatile than what an idealistic straight-line adoption curve that is enforced by a mandate would suggest.”
“In summary, we would be pursuing a future whereby EV policy in this country is just a bit more reflective of the realities of consumer demand, rather than a forced outcome,” Aquilina added.
Canada’s original plan set out a gradual ramp-up of EV sales until 2035, when all light-duty vehicles sold would need to be either plug-in hybrids or fully electric. By scrapping the 2026 mandate, Carney’s government has signaled a shift in approach, though it has also launched a 60-day review of the country’s broader EV program. According to CTV News, internal government documents suggest that annual sales targets may still be amended.
Good for Carmakers, Bad for Drivers?
Not everyone sees the delay of EV mandates in the country as harmless. Adam Thorn, director of transportation at the Pembina Institute, argued that relaxing the mandate helps automakers but undermines long-term benefits for Canadians.
“While automakers are facing serious challenges due to U.S. tariffs, the government could have maintained the overall purpose of the regulation by adjusting existing compliance flexibilities to provide automakers some much-needed breathing room,” he said.
Thorn suggested options like extending credits for plug-in hybrids and charging infrastructure, modestly easing targets, or reconsidering tariffs on Chinese-made EVs, steps that could support the industry without weakening Canada’s overall electrification goals.
