Pressure building on Liberals to rethink electric vehicle mandate

Edmonton Journal

26-06-2025

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OTTAWA — As Canada approaches a critical starting point for its electric vehicle goals, pressure is building on Prime Minister Mark Carney's government to rethink its plan.
Starting next year, the Liberal plan to get more electric vehicles on the road will enter its first phase: mandating sales targets for car companies, which could purchase credits, including by spending on charging infrastructure, or face penalties for not complying.
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The government has set a target of 20 per cent of new passenger vehicles sold in 2026 must be either battery-powered or hybrid, which increases to 60 per cent by 2030 and reaches 100 per cent by 2035.
The goal is to reduce the country's emissions, taking direct aim at the transportation sector, which is among the top emitters.
But with plummeting electric car sales and Canada's auto sector under duress from a trade war with the U.S, which has abandoned its electrification goals under President Donald Trump, Carney's government must now decide whether to forge ahead or reconsider a core climate policy.
'They're going to have to make adjustments,' said Flavio Volpe, president of the Automotive Parts Manufacturers' Association.
'I think they know that, the industry knows that. It's really a negotiation on where those adjustments land. Is this a time for stretch goals or is this a time for reality. What's the mix?'
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He added that he had spoken to 'several ministers' this week.
Brian Kingston, the president and CEO of the Canadian Vehicle Manufacturers' Association, which represents Ford, General Motors and Stellantis and has long opposed the sales mandate, says the policy heaps on added costs at a time when keeping production in Canada has been made more difficult by U.S. tariffs
'At a time where companies are already facing tariff pressure, they are now going to face challenges selling vehicles in the Canadian market. Very difficult to make the case for Canada with this policy in place.'
Ford Canada CEO Bev Goodman was among the latest to call for the mandate to be scrapped, pointing to falling customer interest.
Statistics Canada bears that out, with the agency reporting a 45-per-cent drop in new zero-emission vehicles sold in March from the same month the year before. It said these new vehicles accounted for around seven per cent of vehicles sold in March 2025 — a figure critics point to as fuel to argue a 20 per cent sales target is unrealistic.
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When the sales mandate was introduced several years ago, Volpe said the market was better. Now, he says, 'we're not going to make it.'
'The math of not making it is punishing for companies that are all currently manufacturing in Canada, employing Canadians, both directly and buying lots of volume from suppliers.'
For Joanna Kyriazis, director of public affairs at Clean Energy Canada, which, along with other stakeholders, helped the Liberals develop their zero-emission vehicle policy, she says 'flexibility' has been built into the program, which recognizes the impact on industry.
The Opposition Conservatives, before the House of Commons broke for summer, also ramped up pressure on the Liberals to scrap the mandate, saying it removes 'choice' from consumers.
'The urgency and the pressure that is sort of coming across in public discussions is not quite there,' Kyriazis said. 'There's some time still to ramp up.'
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She said there were steps the government could take to reverse what she also notes has been a 'drop' in consumer interest, which she connects to the ending of the federal rebate program for zero-emission vehicles announced earlier in the year, and that the Liberals have campaigned on reintroducing to the tune of $5,000.
British Columbia's Energy Ministry pointed to the same drop when it fielded recent questions regarding a slide presentation that was obtained by reporters, showing the province to be 'considering several changes' to its own program, noting how the drop in sales made it 'challenging' to meet its mandated target of having 90 per cent of new vehicles sold be zero-emission by 2030.
Another factor that the B.C. government cited was the backlash against Tesla CEO Elon Musk, who was an adviser to Trump until a public falling out.
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Automakers and others in the industry also warn that Tesla would stand to benefit from the sales mandate.
'The campaign that has been sort of launched against (electric vehicles) and Trump's negativity towards (electric vehicles) has had an impact on consumer sentiment,' Kyriazis said.
Interest has not disappeared, she said, citing recent polling done for the group, that around 45 per cent of Canadians say they would be open to switching to electric for their next vehicle.
The federal government also collected feedback from Canadians. Earlier this year, Transport Canada commissioned a survey and focus groups on Canadians' feelings about the transportation system, which included questions about the zero-emission vehicle mandate.
It reported that 'no clear consensus' was found when it comes to the 2035 sales mandate, with 45 per cent of respondents saying they felt it was a 'good idea,' compared to 39 per cent who said it was not. Another 16 per cent said they were not sure.
Different views also emerged, according to the focus group findings.
They're going to have to make adjustments. I think they know that, the industry knows that. It's really a negotiation on where those adjustments land
The report, delivered in March and disclosed as part of the government's reporting of its public opinion surveys, found 'most participants supported the idea' of a sales mandate, based on reasons that ranged from reducing greenhouse gas emissions to sending a signal to industry about the need to transition and lower costs as compared to gas-powered vehicles.
Those expressing concern cited the need for charging infrastructure, as well as worries about the possibility of battery fires and how they would fare in the extreme cold.
Kyriazis said more education is needed on the range capabilities of electric vehicles, as are 'more efforts from governments' to ensure charging infrastructure gets built into condominiums and apartments through changes to building codes, given that it is often young people who call these buildings home who are among the most interested in switching to electric.
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Expanding public charging infrastructure is also needed, particularly outside of British Columbia and Quebec, which have their own electric vehicle mandates. That, however, is 'dependent on government investment.'
Kingston agrees that demand must increase for electric vehicles, including through spending on more public infrastructure.
Still, he suggests rebate programs cannot be permanent, given how much they cost and the overarching goal to reach parity between the cost of electric vehicles and gas-powered ones, which he says is 'taking longer than anticipated.'
Kyriazis said the government must announce when it intends to bring back the program to provide certainty to consumers waiting before deciding to make a purchase.
A spokesperson for Environment and Climate Change Minister Julie Dabrusin said the government would 'look at ways to reintroduce a purchase incentive.'
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