Canada Suspends EV Mandate, and GM CEO Can't Help But Smile | Carscoops

      GM Canada's leader opposes mandated EV sales that automakers must follow.

      General Motors advocates for EV policies in Canada that align with consumer preferences.

      Canada aimed for all light-duty vehicle sales to consist of BEVs or PHEVs by 2035.

      Prime Minister Mark Carney has announced a 60-day review of the nation’s EV policy.

      The trend of governments backing away from previous electrification commitments isn't limited to the US. Recently, Canadian Prime Minister Mark Carney revealed that the government will no longer enforce a mandate requiring 20 percent of all new vehicles sold in Canada by next year to be electric. This announcement has been received positively by GM.

      While addressing an EV conference in Vancouver, GM Canada president Kristian Aquilina emphasized that the shift to electric vehicles will be unpredictable and policies should mirror consumer demand.

      From the automaker's viewpoint, Aquilina stated, “The path to EV adoption won’t be straightforward. There will be fluctuations that make adoption more erratic than an ideal linear progression suggested by a mandate.”

      He further stated, “In essence, we prefer a future where EV policy in this country better represents consumer demand realities, rather than a mandated outcome.”

      Canada’s initial strategy outlined a gradual increase in EV sales until 2035, when all light-duty vehicles sold would need to be either plug-in hybrids or fully electric. With the cancellation of the 2026 mandate, Carney’s administration has indicated a change in direction; however, it has also initiated a 60-day review of the country's overarching EV program. Reports from CTV News indicate that annual sales targets might still be subject to modification.

      Is it Beneficial for Automakers, Detrimental for Consumers?

      Not everyone views the postponement of EV mandates in the country as benign. Adam Thorn, transportation director at the Pembina Institute, contended that relaxing the mandate benefits automakers but detracts from long-term advantages for Canadians.

      “While automakers are grappling with significant challenges due to U.S. tariffs, the government could have upheld the regulation's overall intention by altering existing compliance flexibilities to provide automakers some necessary relief,” he said.

      Thorn proposed alternatives such as extending credits for plug-in hybrids and charging infrastructure, slightly reducing targets, or reassessing tariffs on Chinese-manufactured EVs, measures that could aid the industry without compromising Canada’s overall electrification objectives.