Prime Minister Mark Carney said on Wednesday that the Canada government ends EV sales mandate, and instead, they will give more money to people who buy EVs and invest more in charging stations. Carney said this change will still help Canada meet its climate targets while being easier for car companies, and the decision came after automakers said the sales rule was costing them too much money because people are not buying EVs as fast as expected.

Money for Help and Charging Stations

Canada will use C$2.3 billion ($1.68 billion) to help people and businesses buy or lease EVs, and they can get up to C$5,000. Also, C$1.5 billion will go toward building more EV charging stations across the country, which will help address one of the biggest barriers to EV adoption.

The government will also give up to C$3.1 billion to help Canadian car companies change to making EVs. Officials said this money will save jobs, update factories, and make sure Canada can still compete in the world car market.

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Rules for Emissions Instead of Sales

Instead of making car companies sell a certain number of EVs, Canada will have stricter rules for vehicle emissions from 2027 to 2032. The government says these rules will still help them reach their goal of 75% EV sales by 2035 and 90% by 2040, without telling people what to buy.

Carney said the change pays attention to results that are important to Canadians, while not putting too much pressure on the Canadian car business. The old rule, started in 2023, said that 20% of all cars sold in 2026 had to have no emissions, and car companies did not like this rule.

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China Investment, Industry Reaction, and Criticism

Canada is also considering allowing Chinese companies to invest in its EV industry. Carney said a recent deal with China could attract new factory investment and allow a certain number of Chinese EVs to be imported. Canada will allow up to 49,000 Chinese EVs to enter with a 6.1% tariff, and the number could go up to about 70,000 in five years.

Automakers are pleased with the change, and the Canadian Vehicle Manufacturers’ Association said they like the new help and charging station support, but environmental groups are not happy. Environmental Defence said the move is a big step backward and could hurt climate progress. Canada ends EV sales mandate, but still remains a climate leader, and this new plan balances environmental goals with business needs.

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