Canada’s largest automakers have met with Canadian Prime Minister Mark Carney, urging the government should repeal the federal zero-emission vehicle (ZEV) sales mandate. The industry is calling the mandate “damaging” and “unworkable” as the sector faces waning electric vehicle (EV) demand and mounting pressure from a growing Canada-U.S. trade dispute.
In a meeting in Ottawa on Wednesday, CEOs from Ford Canada, General Motors Canada, and Stellantis Canada met with Carney to discuss the future of the auto industry in light of aggressive new U.S. tariffs and Canada’s looming 2026 EV sales requirement.
The federal ZEV mandate requires that 20% of new vehicle sales must be zero-emission by 2026, rising to 60% by 2030 and 100% by 2035.
Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, said the mandate is “redundant and damaging,” especially as automakers deal with cross-border supply chain disruptions and falling EV sales.
“At a time when the auto industry is under immense pressure, it is more important than ever that the damaging and redundant ZEV mandate be urgently removed,” Kingston said following the meeting. (via Globe and Mail)
The appeal comes as the Canadian government attempts to renegotiate trade terms with the U.S. by July 21. Washington has imposed 25% tariffs on Canadian-made vehicles and parts, while President Donald Trump has signaled his desire to eliminate Canadian automotive imports altogether.
Despite record EV adoption in late 2024, the expiration of federal and several provincial EV rebates has led to a sharp decline in sales. According to Statistics Canada, EVs represented only 7.5% of new vehicle sales in April 2025, down from a peak of 18.3% in December 2024.
ALSO READ: Canada’s ZEV Market Stumbles in Q1 2025, Tesla’s Market Share Shrinks
Automakers say they will not be able to meet the 2026 targets without severely limiting internal combustion vehicle supply or purchasing compliance credits—potentially from Tesla, one of the few companies exceeding EV targets. In response, Environment Minister Julie Dabrusin has indicated the government is reviewing options for a revised incentive program, though details remain unclear.
Despite mounting industry pressure, the federal government has shown no indication of reversing course. Innovation Minister Mélanie Joly reaffirmed last month that the ZEV mandate remains central to Canada’s long-term climate goals. “It’s important that we press the sector to embrace the transition,” she said.
With Canada’s automotive sector facing an uncertain economic and political landscape, the next few weeks will be critical in determining whether Ottawa sticks to its climate agenda or bows to industry and trade pressure.
