{"id":456062,"date":"2026-02-05T19:30:12","date_gmt":"2026-02-05T19:30:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/456062\/"},"modified":"2026-02-05T19:30:12","modified_gmt":"2026-02-05T19:30:12","slug":"carney-scraps-ev-mandate-vows-2-3b-in-consumer-rebates-in-new-auto-plan","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/456062\/","title":{"rendered":"Carney scraps EV mandate, vows $2.3B in consumer rebates in new auto plan"},"content":{"rendered":"

Prime Minister Mark Carney<\/a> on Thursday announced a new program to give rebates to Canadians who buy electric and plug-in hybrid electric vehicles<\/a> as part of a five-point plant to \u201ctransform\u201d the Canadian auto sector.<\/p>\n

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Carney says he will also repeal the electric vehicle mandate<\/a>, and put in place new emissions standards.<\/p>\n

Speaking in the Greater Toronto Area, Carney said the program, which he called the Electric Vehicle Affordability Program, will include $2.3 billion in funding for these purchases.<\/p>\n

Carney said Canadians who purchase or lease a battery-electric or fuel cell electric vehicle will receive up to $5,000 and up to $2,500 for plug-in hybrids priced up to $50,000.<\/p>\n

\u201cTo support the Canadian auto industry, this $50,000 cap will not \u00a0apply to Canadian-made EVs and plug-in hybrids,\u201d Carney said.<\/p>\n

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\u201cAnd these incentives will only apply to vehicles produced in countries with whom Canada has a free trade agreement.\u201d<\/p>\n

Carney said the five-point plan which includes major spending on electric vehicle charging infrastructure and tax credits to incentivize domestic production \u201cwill shape the future of mobility and advance manufacturing in Canada as part of the coordinated plan to build a stronger, more competitive, more independent country.\u201d<\/p>\n

Canada\u2019s automotive sector currently faces steep tariffs of 25 per cent from U.S. President Donald Trump<\/a> and the president has threatened further tariffs on \u201call goods\u201d from Canada over a trade deal with China.<\/p>\n

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Carney said Ottawa\u2019s plans to \u201ctransform\u201d the auto sector amid the ongoing trade war with the U.S. rests on five key pillars, which includes updating national policies on emissions reduction \u201cto focus on outcomes,\u201d including by driving up electric vehicle sales in Canada through these incentives.<\/p>\n

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\u201cWe\u2019ll drive down emissions by more than doubling the stringency of Canada\u2019s vehicle GHG [Greenhouse Gas] standards by 2035 achieving the equivalent emissions reductions of a 75 per cent EV [Electric Vehicle] adoption,\u201d said Carney.<\/p>\n

\u201cWe won\u2019t stop there. By leveraging new investments in EV production, consumer incentives and charging infrastructure, we\u2019ll work towards achieving the equivalent of a 90 per cent EV adoption rate by 2040.\u201d<\/p>\n

\n\t\t\tMore on Canada
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This comes after Carney, in September, announced Ottawa was pausing plans<\/a> to impose minimum EV sales requirements on car companies for 2026 model years and said the government would launch a 60-day review of the current EV mandate program.<\/p>\n

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On Thursday, Carney said these new measures will enable the government to effectively replace the previous EV mandate.<\/p>\n

\u201cThe more stringent emissions standards will enable the Government of Canada to repeal the electric vehicle accessibility standard, so-called EVAS. Replacing EVAS with those stronger vehicle emission standards focuses on the results that matter to Canadians, while avoiding placing undue burdens on the Canadian auto industry,\u201d said Carney.<\/p>\n

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\u201cThis approach allows manufacturers to use a wide range of technologies to meet the standards and to respond to consumer preferences in the near term.\u201d<\/p>\n

The Canadian auto industry has been critical of the previous mandates which they say were not aligned to the demand of consumers, with data showing a drop in EV sales among Canadians in recent years.<\/a><\/p>\n

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Carney vowed to make it more attractive for businesses to invest in these strategies by offering tax breaks.<\/p>\n

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\u201cWe\u2019re also implementing the most comprehensive investment incentives for the auto value chain anywhere in the world. The new productivity super deduction will reduce Canada\u2019s marginal effective tax rate on investment to 13 per cent. That\u2019s more than four percentage points lower than in the United States,\u201d said Carney.<\/p>\n

\u201cIt means businesses can immediately expense 100 per cent of their investments in manufacturing machinery, in equipment, in buildings, in zero emission vehicles, in clean energy equipment, in scientific research and development and productivity enhancing assets including patents, data network infrastructure, computers and beyond.\u201d<\/p>\n

Carney also said the government will introduce new and expand several currently available tax incentive programs \u201cto accelerate investment across the low carbon mobility value chain,\u201d although no specific numbers were immediately provided.<\/p>\n

\u201cWe\u2019re implementing the Clean Electricity Investment tax credit. We\u2019re expanding the Clean Technology Manufacturing Investment tax credit, and we\u2019re including a wide range of critical minerals.<\/p>\n

\u201cAnd we are reducing the tax rate for zero emission technology manufacturers so they benefit from one half of the normal corporate tax rate. And that is before these deductions. Put simply, we\u2019re making Canada the best place to invest, the best place to build, the best place to build green.\u201d<\/p>\n

\t\t\t\tExpanding charging station infrastructure\n\t\t\t\t\t\t<\/p>\n

The same way gas powered vehicles need gas stations, boosting electric vehicle sales in Canada will also require increasing the number of charging stations.<\/p>\n

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Carney on Thursday announced these new measures will include over a billion dollars in spending to expand Canada\u2019s charging station infrastructure.<\/p>\n

\u201cWe\u2019re also going to make it easier and more convenient for Canadians to charge their EVs. Because too many Canadians worry about being able to reliably get charging on journeys, especially in rural and northern communities,\u201d said Carney.<\/p>\n

\u201cTo help fix that, we\u2019re developing a new national charging infrastructure [with a] new strategy: $1.5 billion of investment through the Canadian infrastructure bank, so wherever you live in Canada, charging your vehicle should become as simple as filling your gas tank.\u201c<\/p>\n

More electric vehicles and more charging stations are also expected to increase demand for electricity, and Carney said Thursday details will be announced \u201cin the coming weeks.\u201d<\/p>\n

\u201cOur government will unveil a new electricity strategy to double \u2013 I\u2019ll repeat \u2013 to double our grid capacity. To modernize our infrastructure and to deliver electricity that\u2019s more reliable, more efficient, [and] crucially, more affordable for Canadians,\u201d said Carney.<\/p>\n

\u2013 More to come<\/p>\n

\n\t\t&copy 2026 Global News, a division of Corus Entertainment Inc.\t<\/p>\n","protected":false},"excerpt":{"rendered":"Prime Minister Mark Carney on Thursday announced a new program to give rebates to Canadians who buy electric…\n","protected":false},"author":2,"featured_media":456063,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[34716,187081,45,49,48,8334,46,2659,714],"class_list":["post-456062","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-auto-sector","tag-automobile-industry","tag-business","tag-ca","tag-canada","tag-donald-trump-tariffs","tag-economy","tag-mark-carney","tag-politics"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/456062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=456062"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/456062\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/456063"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=456062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=456062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=456062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}