Major automaker executives urged Prime Minister Mark Carney on Wednesday to scrap the federal electric vehicle mandate. They warned that banning the sale of gas-powered vehicles was unworkable due to declining electric vehicle sales and ongoing trade disputes with the United States.
The chief executives of Ford Motor Company of Canada, General Motors of Canada and Stellantis Canada met with Carney in Ottawa as Canada seeks to resolve a trade dispute with the U.S. before a July 21 deadline.
The auto industry is a focal point in the talks, with Canadian-made vehicles currently facing a 25 per cent tariff.
Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, said the ZEV mandate was a central point of discussion during the meeting.
“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 in a statement.
“Canada’s longest-established automakers appreciated the candid discussion with the Prime Minister and look forward to collaborating to protect and grow this critical industry.”
The mandate, first announced in 2022 under Trudeau, requires that 20 per cent of new vehicles sold in Canada be zero-emission by 2026, increasing to 60 per cent by 2030, and every single new vehicle by 2035, effectively banning new gas-powered vehicle sales.
Automakers have warned that the targets are unrealistic, pointing to decreased demand, high costs, and limited availability of charging infrastructure.
Electric vehicle sales in Canada have dropped sharply in recent years.
Two years ago, EVs accounted for 13.8 per cent of new vehicle sales in 2023, but fell to 6.5 per cent of sales in March 2025, according to Statistics Canada.
The decline has been attributed to reduced government incentives, higher vehicle costs and concerns over charging availability.
Quebec is also winding down its incentive program, while Ontario cancelled its plan in 2018.
South of the border in the United States, President Donald Trump has eliminated the federal EV mandate and blocked California’s attempts to impose its own.
Trump has also ended federal EV rebates in the U.S. and has since applied a 25 per cent tariff on Canadian vehicles, as well as 50 per cent tariffs on steel and aluminum imports.
The automaking industry in Canada has already seen delayed investments and businesses fleeing.
Honda Canada recently postponed a $15-billion EV and battery plant in Ontario and is relocating CR-V production to the U.S.
Stellantis halted production of the electric Dodge Charger in Windsor and laid off thousands of workers in May alongside GM.