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The Department of Environment claims electric cars reduce medicare costs, but couldn't specify savings at the Commons environment committee yesterday, as reported by Blacklock’s.

Megan Nichols, assistant deputy environment minister, testified that electric vehicles offer health and cost benefits to Canadians by reducing air pollution and healthcare expenses. 

Cabinet's Electric Vehicle Availability Standard is projected to reduce greenhouse gas emissions by 362 million tonnes over 25 years, according to Assistant Deputy Nichols, who did not provide health benefit estimates.

Feds @EnvironmentCa claim "health benefits" of EV mandate, say electric cars "reduce health care costs" but don't say how much. https://t.co/I4iMN8CDtz #cdnpoli pic.twitter.com/4mYgZLrRqw

— Blacklock's Reporter (@mindingottawa) November 4, 2025

Conservative MP Carol Anstey expressed skepticism regarding the 2035 gas vehicle sales ban, citing unsold EVs at dealerships are "tying up investment capital" and jeopardizing dealer viability. 

With over $98 billion in combined investments ($46 billion) and taxpayer handouts ($52 billion), 2023 EV sales reached only 11.7% (546,000 EVs), making next year's 20% sales target unrealistic. That excludes costs for EV charging stations and rebates.

Despite optimistic forecasts, plummeting EV sales show these projections were a "complete fantasy," leading auto executives to seek an end to the EV mandate.

On September 5, Prime Minister Mark Carney prefaced his focus on restructuring the Canadian auto sector. “The suspension of the EV mandate for 2026 is part of helping with that,” he told reporters. 

Auto industry representatives slam the Liberals' "Zero Emission Vehicle mandate."

"Instead of incorporating industry and expert input, the federal government relied on ill-conceived analysis from environmental groups posing as automotive experts." pic.twitter.com/yemsaFgK2D

— Rebel News (@RebelNewsOnline) January 14, 2025

MP Anstey questioned the necessity of EV incentives if their benefits are so great. Assistant Deputy Nichols clarified that Canada must "use all the tools" to attract a fair share of global zero-emission production given its small market.

However, battery plant interest in Canada has also declined. This is primarily due to high costs, range anxiety, poor cold-weather performance, inadequate charging infrastructure, rising interest rates, and inflation.

Meanwhile, President Donald Trump's Unleashing American Energy executive order ended the U.S. electric vehicle mandate this year. The U.S. previously offered tax credits up to $9,600 for new and $5,100 for used clean vehicles, while Canada offered $5,000 per vehicle.

Anstey later questioned the mandate’s utility, to which Assistant Deputy Nichols explained that the mandate was put in place to address past supply shortages and long wait times for EVs.

“So now that we’re in a different environment, would you suggest then the mandate would not be necessary?” asked MP Anstey. “We are receiving input,” replied Nichols.

Poilievre says that a Conservative government will revitalize Canada's auto sector and make vehicles more affordable.

He pledges to allow Canadians to buy whichever cars they please instead of  coercing people into buying expensive EVs like Carney. pic.twitter.com/tbK1Ao5PME

— Rebel News (@RebelNewsOnline) April 24, 2025

Yesterday, Conservative MP David Bexte warned that maintaining Canada's mandate would shift auto production to America, to which Assistant Deputy Nichols replied that the mandate excludes manufacturing. 

“I understand that, but it’s the consequence of the mandate,” said MP Bexte. “Manufacturers are ceasing operations and transferring operations out of the country.”

Also on Monday, the federal government initiated a dispute resolution with Stellantis NV to recover taxpayer funds after the automaker moved Jeep Compass production from Brampton, Ontario, to Belvidere, Illinois, resulting in 3,000 job losses.

Nichols denied the job losses were due to the Electric Vehicle Availability Standard, but MP Bexte countered, "Tell that to the thousands of people who are out of jobs.”

In 2022, the federal and Ontario governments committed over $1 billion to Stellantis for EV production retooling in Brampton and Windsor, a Stellantis-LG Energy Solution joint venture. To date, Stellantis has received $100 million and NextStar $42 million.