Canada Unveils a New Automotive Strategy

Canada’s federal government has rolled out a major new plan to reshape the country’s auto industry. The strategy shifts away from the previous electric-vehicle (EV) sales mandate and instead uses updated fuel efficiency standards and incentives to drive the transition to cleaner vehicles.

Key points you need to know:

• The government is dropping the old EV sales targets that once aimed for a fixed percentage of EVs by certain deadlines. Those are being replaced with more flexible emissions standards and a credit system that still pushes manufacturers toward low-emission vehicles.

• Ottawa plans to bring back popular EV purchase incentives to encourage consumers to choose cleaner cars.

• New emissions regulations are expected to aim for a high share of EVs in the market by the mid-2030s — even without a strict mandate.

• The strategy is partly a response to pressure from the auto industry and provincial leaders who wanted more flexible, cost-manageable rules.

In short: Canada is pivoting from rigid EV quotas to a broader plan focused on standards, incentives, and market flexibility, while still encouraging a shift toward cleaner, more efficient vehicles.