Federal government eases electric vehicle mandate, launches review of sales targets
The Government of Canada is stepping back from its near-term battery-electric vehicle (EV) sales mandate, announcing Friday it will scrap the progressive 2026 target under the Electric Vehicle Availability Standard (EVAS) and launch a full review of the regulation.
The EVAS, introduced to accelerate Canada’s shift to zero-emission vehicles (ZEVs), currently requires 20 per cent of new light-duty vehicle sales to be electric by 2026, 60 per cent by 2030, and 100 per cent by 2035.
While the 2030 and 2035 benchmarks remain in place, the 2026 milestone will be removed in order to ease pressure on automakers amid escalating trade challenges with the United States.
- You might also like:
- Proposed national class action against Ford Canada claims batteries are defective
- Alberta's $200 electric vehicle tax begins very soon
- B.C. government takes action against Tesla amid U.S. tariff tensions
“We are taking a measured approach — supporting our industries today, while keeping a clear focus on a sustainable future,” reads a bulletin by the Prime Minister’s Office today.
Ottawa has launched a 60-day review of the EVAS to ensure the policy reflects “market realities” and does not place an undue burden on manufacturers. The review will also consider whether the longer-term sales targets should be adjusted and explore added flexibilities for industry.
The federal government pointed to new U.S. tariffs and policy uncertainty south of the border as major risks to affordability and supply in Canada’s integrated auto market. The move aims to help Canadian automakers remain competitive while continuing the shift toward clean transportation.
It is stressed that the federal government remains committed to a net-zero future, noting that one in four vehicles sold globally today is already electric. Officials argue that EVs can deliver long-term savings for drivers, improve air quality, and support public health while creating new jobs in Canadian manufacturing and critical minerals.
At the same time, Ottawa acknowledged the transition is unfolding during a period of economic uncertainty and said it will also explore ways to bring more affordable EVs to Canadian consumers.
The adjustments to EVAS are part of a wider federal plan to support sectors facing global trade headwinds while still advancing Canada’s climate commitments.
“The automotive sector is essential to Canada’s economy, supporting jobs, trade, innovation, and the green transition,” reads the bulletin.
In response, Government of British Columbia officials indicated today it would consider potential changes to its own provincial ZEV mandates, which carry a similar progressive timeline leading to 100 per cent by 2035. Adoption rates recently saw slight declines, following the phasing out of federal and provincial EV subsidies.