Automotive CEOs, including those from Ford, Stellantis, and GM Canada, along with the Canadian Vehicle Manufacturers’ Association, have urged Prime Minister Mark Carney to repeal the 2035 zero-emission vehicle mandate.

Association CEO Brian Kingston told reporters before the meeting on June 2 that the government’s EV mandate was “not sustainable.”

“The targets… cannot be met,” he said, adding that Canada’s auto sector success would also be discussed.

The PMO stated that Carney and auto sector leaders discussed trade tensions with the U.S., building a Canadian supply chain, and diversifying trading partners.

The White House has imposed 25% tariffs on imported vehicles and parts. However, USMCA-compliant vehicles from Canada and Mexico are only subject to this tariff on the value of content produced outside the United States. Further trade discussions between Carney and President Donald Trump are ongoing.

Brian Kingston, President and Chief Executive Officer of the Canadian Vehicle Manufacturers' Association (CVMA) states while heading into meeting with Carney

"Well, the EV mandate itself is not sustainable. The targets that have been established cannot be met, and that will be… pic.twitter.com/4lKjp7DvPJ

— cbcwatcher (@cbcwatcher) July 2, 2025

Ottawa’s EV mandate—not part of discussions with auto executives—requires 20% of new light-duty vehicles sold in 2026 to be zero-emission, increasing to 100% by 2035.

Battery-powered electric vehicles comprised just 1.3% (327,732 of 25.7 million) of Canadian road vehicles last year, according to Statistics Canada. New EV registrations saw a post-COVID-19 first, dropping 23% year-over-year.

Since last December, EV sales fell from 18.29% of new vehicle sales to 7.53% by April after the rebate program ended prematurely over depleted funding.

Ottawa’s $5,000 EV rebate, initially set to expire in March, will be reintroduced, though details are pending. Conservative MPs failed in a June 17 vote (194-141) to overturn the costly federal mandate.

“Nobody is denying people the choice to drive an electric car,” said Conservative MP Melissa Lantsman. “There is nothing wrong with that. What is wrong is the government mandating that everybody drive an electric car.”

A 2024 federal study revealed that only 36% of Canadians considered buying an EV, down from 51% in 2022. The report cited high costs (75%), poor cold-weather performance (59%), and limited range (56%) as major concerns.

Automakers have resisted the mandate for months, citing infrastructure and affordability issues, especially the end of taxpayer rebates.

Most Canadians (54%) opposed the mandate dating back to last year, according to a 2024 Leger poll for the Canadian Taxpayers Federation.

Despite facing opposition to the mandate, Environment Minister Julie Dabrusin appeared supportive on June 10. 

Dabrusin stated Thursday that Carney, upon appointing her environment minister, stressed the environment's importance. She added that the government would also prioritize a strong economy and securing energy resources.

“We know it’s very important to Canadians that as we do this, we’re doing it properly, and that we’re doing it in a way that actually supports a strong country as a whole, that takes into account our nature and the like,” she added.

Since 2020, Canada has allocated over $46 billion to 13 EV, battery, and component manufacturing projects, subsidizing factories in cities like St. Thomas and Windsor, which face some of Canada's highest unemployment rates. Plants in both locales have either halted construction or been delayed due to market instability and faltering consumer interest.

The Liberal government still intends to expand Canada's EV charging network by 2030, targeting 33,900 new standard ports and 4,700 fast ports to support EV sales.

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