Automakers ‘cautiously optimistic’ for EV mandate changes after meeting with Carney
The Canadian Vehicle Manufacturers’ Association CEO Brian Kingston recently met with Prime Minister Mark Carney alongside the CEOs of Ford Canada, Stellantis Canada, and GM Canada to discuss the repeal of the electric vehicle (EV) sales mandate. Kingston expressed cautious optimism following the meeting, where the automakers emphasized the challenges of meeting the targets outlined in the mandate.
One of the main concerns raised by the industry leaders was the impracticality of the EV mandate, especially in light of the current market conditions. Kingston questioned the necessity of adding an EV mandate on top of existing greenhouse gas regulations, particularly as EV sales have seen a significant decline in recent months.
The EV sales mandate requires that 20% of all new light-duty vehicles sold in Canada be zero-emission starting next year, with the target increasing annually to reach 100% by 2035. However, recent data from Statistics Canada shows that EVs only accounted for 7.53% of all new vehicle sales in April.
Despite the introduction of incentives such as the Incentives for Zero-Emission Vehicles (iZEV) program, which offered a $5,000 rebate on new electric vehicles, sales have not met the expected targets. The suspension of the iZEV program in January further impacted EV sales, which dropped to 6.53% in March before a slight increase in April.
Kingston highlighted the significant challenge of achieving the 20% EV sales target by 2026, stating that a substantial increase in ZEV sales would be required. While the government has indicated plans to reintroduce a consumer rebate program for EVs, Kingston emphasized the importance of providing a clear timeline to avoid further undermining EV sales.
Industry Minister Mélanie Joly and Environment Minister Julie Dabrusin have both hinted at the possibility of bringing back support programs and rebates for EVs. However, Kingston stressed that simply reintroducing a rebate program would not be sufficient to meet the EV mandate, citing the substantial cost implications.
The government previously spent nearly $3 billion on EV rebates over a five-year period, raising concerns about the sustainability of such policies. Kingston emphasized the need for a comprehensive plan and timeline if the government intends to reintroduce incentives for EVs.
Overall, the meeting between automakers and government officials highlighted the complexities surrounding the EV sales mandate and the challenges of meeting the ambitious targets set out for the industry. Moving forward, clear communication and strategic planning will be essential to support the growth of EV sales in Canada.
