Ottawa, Ontario -- The Canadian Automobile Dealers Association is calling for a complete reset of the federal zero emission vehicle mandate, saying the targets do not match what is happening in the market.
CADA president Tim Reuss said in the release that “affordability has become the defining barrier to EV adoption.”
He also said the mandate does not reflect the prices Canadians are facing and that many buyers cannot manage current payments. Reuss said: “The expectations set out in the ZEV mandate do not match what is happening in the marketplace.”
According to the release, many dealers have invested in electric vehicle training and equipment but that sales have slowed while costs, tariffs and interest rates have increased. It said customers in many parts of the country face long distances, limited public charging and higher monthly payments than they expect.
CADA called for the mandate to be paused until trade and tariff issues under the continental agreement with the United States and Mexico are settled. It said all hybrids, not just plug in hybrids, should count toward compliance. It also urged the federal government to remove electric vehicles and hybrids from the luxury tax and to prevent companies with no Canadian retail network or manufacturing presence from earning credits from surplus sales.
The release noted that several provinces have their own electric vehicle rules and urged Ottawa to work toward a single approach. It said the current policy framework risks increasing costs for Canadian buyers.
Reuss said the federal mandate requires “a reset grounded in real world affordability and a realistic view of supply.”
