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Ottawa suspends 2026 electric vehicle sales target

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The Canadian federal government has confirmed it will suspend the requirement that 20% of new vehicle sales be electric by 2026. The move comes amid economic pressures linked to U.S. tariffs on key industries, which have a direct impact on Canada’s auto sector.

According to Reuters, Ottawa aims to give automakers a break by softening the 2026 EV mandate, originally set to accelerate the transition to zero-emission vehicles (Reuters). The measure is part of a broader plan to support Canadian businesses facing trade challenges.

Yahoo News notes that the government has decided to put the mandate “on pause,” raising questions about whether provinces such as British Columbia—where stricter local targets already exist—will follow Ottawa’s lead (Yahoo News).

Meanwhile, The Deep Dive highlights that Ottawa is considering a regulatory review of its EV sales policy to better reflect market realities, including supply chain issues and affordability concerns (The Deep Dive).

For the auto industry, the suspension is seen as a relief, as many argued the targets were overly ambitious in the short term. The adjustment provides manufacturers with more time to scale production and align with actual consumer demand.

This policy shift underscores the challenges of balancing environmental goals with economic and trade realities in Canada’s EV transition.

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