Canada Suspends Electric Vehicle Sales Mandate Amid Trade Tensions

The Canadian federal government has taken a courageous step. It won’t finalize its plan to impose a national requirement that 20 percent of all new cars and trucks sold across the country be electric by next year. When Prime Minister Mark Carney made it known that the sales mandate for electric vehicles would be suspended,…

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Canada Suspends Electric Vehicle Sales Mandate Amid Trade Tensions

The Canadian federal government has taken a courageous step. It won’t finalize its plan to impose a national requirement that 20 percent of all new cars and trucks sold across the country be electric by next year. When Prime Minister Mark Carney made it known that the sales mandate for electric vehicles would be suspended, he made the case for undertaking a full, public review of the Canadian electric vehicle program.

This suspension will launch a 60-day review period focused on fulfilling the rule’s intent to find flexibilities and ways to save automakers money. The government understands that automakers are in a liquidity crunch at the moment, especially given heightened trade tensions with the U.S.

British Columbia’s Adrian Dix, the province’s Energy Minister, has said as much. He suggested that the federal decision largely reflects the situation that is unique to Ontario. He gave as an example that the federal government needs to work towards a more consistent, nationwide policy after the review phase has passed.

“The issue here in Canada — and I think the federal government needs to engage in this a little bit — is first and foremost with Ontario.” – Adrian Dix

With provincial adoption rates nearly triple the national average, EVs represent more than 15% of all new vehicle sales. Strong demand for electric vehicles persists in British Columbia’s market. As of today, Canada’s national average for electric vehicle adoption is at 13.8 percent. In comparison, Ontario’s adoption rate is a mere 7.4 percent. Quebec is once again the country’s leader, with a remarkable 30.1 percent of new vehicle sales now electric. Both British Columbia and Quebec have surpassed the 10 percent threshold in electric vehicle adoption. By comparison, Saskatchewan is lagging far behind at just 2.5 percent.

Dix added that any new policy arising from the review needs to address the biggest barriers to EVs purchase. He noted that affordability must be priority number one. He said it was crucial to enhance charging networks across Canada. In particular, he decried the need for upgrades in Ontario as well.

“I want to say this: Their target for this year, we achieved four years ago,” – Adrian Dix

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