Domestic auto manufacturers are calling on cabinet to permanently repeal Canada’s electric vehicle sales mandate, saying it penalizes the industry and threatens competitiveness.Blacklock's Reporter says Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association, told the Commons industry committee the policy could be overturned immediately to benefit Canadian automakers. “It levies punitive costs on companies that do not achieve these arbitrary sales targets,” Kingston said. “Under this regulation, vehicles manufactured here are being phased out by the government. It’s an inexplicable situation.”The federal Electric Vehicle Availability Standard had required 20% of new vehicle sales to be electric in 2026, rising to 60% by 2030, with gasoline-powered cars and pickups banned from sale by 2035. Prime Minister Mark Carney suspended the first phase of the mandate in September, citing a restructuring of the Canadian auto sector..Kingston warned the mandate would be costly for both manufacturers and consumers. Companies failing to meet targets could spend billions buying credits from other firms, many outside Canada, or remove 700,000 to 900,000 vehicles from the market annually, reducing supply and driving up prices. “Our estimate is that this will cost the industry about $3.6 billion by 2030,” he said.Liberal MP Dominique O’Rourke (Guelph, Ont.) acknowledged the government has heard industry concerns. “The context has changed,” she said. “There are over 110 electric vehicle models available in Canada.”.David Adams, CEO of Global Automakers of Canada, said the transition to electrified vehicles was inevitable but would not be smooth. “The challenge is how quickly we get there and what tools are used to move us,” he said. “At the end of the day, the deciding factor is the consumer. They have to be willing to purchase the vehicles being made at our factories.”Adams added that the adoption curve has been complicated by shifting policies in the United States, which have affected the timing and cost of the transition.
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