Facing pressure from automakers and provinces, Prime Minister Mark Carney may drop EV sales targets, reports say.
Canada is expected to announce a new national automotive strategy that will replace its electric vehicle mandate with fuel efficiency standards and a credit based system, according to a CBC News report published.
Under the proposed framework, automakers would no longer be bound by mandatory electric vehicle sales targets. Instead, manufacturers would be required to meet emissions and fuel efficiency standards while earning credits for producing electric vehicles. Companies would also be allowed to carry forward credits earned under the existing mandate, the report said.
Ottawa is also expected to reinstate consumer incentives for electric vehicle purchases, a move aimed at supporting demand as the government shifts its regulatory approach, according to sources cited by CBC News.
Two auto industry lobbyists told Reuters that they expect the revised system to still require a substantial number of electric vehicles on the road by 2035, despite removing strict sales quotas.
Prime Minister Mark Carney has faced growing pressure from automotive executives and several provincial governments to abandon the current mandate. The existing rules require electric vehicles to account for 60% of new car sales by 2030 and 100% by 2035.
Industry leaders and provinces have warned that the targets are difficult to achieve given supply chain constraints, charging infrastructure gaps and affordability concerns.
