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News in English (USA) / 06.02.2026 / 02:00

Canada Overhauls Electric Vehicle Policy Amid Industry Changes

In a significant shift, Canada has announced the scrapping of its electric vehicle (EV) sales mandate, a move that aligns with new strategies outlined by Prime Minister Carney. This decision comes as the government aims to revitalize the auto industry while responding to pressures from automakers. Alongside the termination of the EV mandate, Canada will reintroduce buyer incentives, including a $5,000 rebate for EV purchases, to stimulate sales in the struggling market. This pivot has raised discussions regarding its implications for climate policy and the future of electric vehicle adoption in the country. Critics have pointed out that reliance on rebates might not be sustainable, while others emphasize the necessity of robust emission standards to accompany the new incentives. As the country seeks to modernize its auto sector, the focus is expected to shift towards enhancing fuel efficiency across all vehicle types, rather than strictly promoting electric vehicles.
The New York Times, CTV News, Reuters, Bloomberg, driving.ca, Toronto Sun, National Post, CBC, Global News, The Globe and Mail