Ottawa Plans to Revive EV Incentives in Auto Strategy, Sources Say
Ottawa is exploring plans to revive incentives for electric vehicles (EVs) and plug-in hybrids as part of its national automotive strategy. Sources indicate that these consumer incentives may resemble a previously suspended rebate program, although no decisions have been confirmed. The government’s initiative follows the suspension of the iZEV program, which provided up to $5,000 for EV purchases but ceased over a year ago due to budget constraints.
Historical Context of EV Incentives in Canada
Last year, Environment Minister Julie Dabrusin suggested the possibility of renewing consumer rebates. However, Prime Minister Mark Carney’s recent budget did not reaffirm funding for this initiative. This lack of commitment has raised concerns among stakeholders eager for clarity.
Current Developments in the Automotive Strategy
A senior official revealed that the upcoming automotive strategy will address several key areas:
- Paused sales mandates for electric vehicles
- Investment in EV infrastructure
- International partnerships, particularly with South Korea, Germany, and China
This information emerged following Prime Minister Carney’s visit to Beijing, where he agreed to lower tariffs on 49,000 Chinese EVs entering Canada in exchange for concessions on Canadian agricultural products.
Focus on EV Sales Mandate
The pressure is mounting for Carney to reconsider ambitious EV sales targets. The current mandate requires that 60% of new cars sold must be electric by 2030, increasing to 100% by 2035. This initiative aims to ensure a diverse range of zero-emission vehicles for consumers.
In September, Carney paused the 2026 targets, calling for a 60-day review due to challenges faced by the Canadian auto sector. Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, has criticized the feasibility of such goals without adequate government support.
Partnerships and Infrastructure Improvements
To alleviate concerns over EV adoption, particularly regarding charging infrastructure, the government is considering various partnerships to enhance charging station availability. These efforts are aimed at addressing consumer fears about range and accessibility. The government is evaluating whether to involve Canada’s Major Projects Office to expedite the construction of new stations.
Industry stakeholders have expressed optimism that the federal government may reinstate funding for charging stations through the Zero Emission Vehicle Infrastructure Program. This initiative could play a vital role in supporting a surge in EV demand in the near future.
As Ottawa finalizes its automotive strategy, stakeholders await the anticipated release of plans that could shape the future of electric vehicles in Canada.
